Veropharm to be Acquired by Consortium Including Siguler Guff & Co.

A consortium of investors may acquire pharmaceuticals unit OAO Veropharm from the OAO Pharmacy Chain 36.6. Russia’s largest drugs retailer may get USD 230 million for a 52 percent stake in its subsidiary.

Unidentified investment bankers have reported that Russia Partners Management LLC, Siguler Guff & Co. LLC, Capital Growth Asset Management, Invest AG, Stada Arzneimittel AG and Penta Investments have made an offer.

The deal is supposed to finalized by the end of March.

OAO Veropharm (www.veropharm.ru)
Established on January 21, 1997 by the Pharmacy Chain 36.6, Veropharm is the leading Russian pharmaceutical producer of generic drugs, oncological medication and adhesive bandages. The company produces nearly 2,575 million tablets and capsules each year with an additional 396 million adhesive bandages, amongst other items. Its three plants: Voronezh Chemical, Belgorod Pharmaceutical Plant and Pokrov Pharmaceutical Plant comprise the company’s main facilities, producing over 400 products in the different areas of medicine. Veropharm employs 3000 people.

Siguler Guff & Company (www.sigulerguff.com)
Private equity investment firm Siguler Guff & Company use a multi-pronged strategy to make investments into carefully defined areas of market inefficiency. It provides direct investment into private equity and funds-of-funds. Established in 1991 as part of Paine Webber, the company went independent in 1995 and presently has over USD 7.5 billion in assets under management. Siguler Guff & Company also manages an advisory service through Siguler Guff Advisers.