Astorg to acquire CordenPharma

July 2022 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

July 2022 Issue

In one of the year’s largest private equity (PE) deals in European healthcare, PE firm Astorg Partners has acquired contract drug development and manufacturing company CordenPharma from privately owned industrial group International Chemical Investors (ICIG).

A global pharmaceutical contract development and manufacturing organisation (CDMO), CordenPharma is a key partner for the pharma industry, providing distinctive knowledge and expertise, an integrated product offering and end-to-end capabilities from early-stage development to commercial large-scale manufacturing.

“We look forward to having the opportunity to partner with ICIG and CordenPharma’s founders and broader management team to drive our joint vision and growth ambitions,” said Signe Michel, director of healthcare investments at Astorg. “We will leverage our expertise in pharma services and our global network to help further develop the company through both organic and external initiatives.”

Established in 2006, CordenPharma employs more than 2600 people in 11 manufacturing facilities and one R&D laboratory located across Europe and the US. The company serves more than 250 blue-chip pharma and biotech customers across five technology platforms: peptides; lipids and carbohydrates; highly potent and oncology; injectables; and small molecules.

Moreover, CordenPharma has experienced strong organic growth thanks to its position in complex and fast-growing drug modalities including messenger RNA (mRNA) vaccines, peptides and high-potency compounds notably for oncology therapeutics.

However, following a strategic review of its portfolio, ICIG – which employs approximately 5685 people and operates more than 25 manufacturing facilities in Europe and the US – concluded that CordenPharma, in its next growth phase, would be best developed further with a partner and that ICIG would focus more on its chemicals portfolio.

“I would like to thank ICIG for its trust, support and commitment over the years in supporting CordenPharma’s growth and strategic vision to become a leading CDMO,” said Michael Quirmbach, chief executive of CordenPharma. “Together with Astorg, we will continue this exciting journey and further accelerate the growth as an organisation across our five technology platforms.”

A European PE firm with over €15bn of assets under management, Astorg works with entrepreneurs and management teams to acquire market leading global companies headquartered in Europe or the US, providing them with the strategic guidance, governance and capital they need to achieve their growth plans.

“The transaction is the result of our thematic sourcing effort in pharma services,” said Judith Charpentier, partner and head of healthcare at Astorg. “We identified CordenPharma as a leading CDMO focused on some of the most promising areas of pharma research and development, and with a strong customer focus and unique innovation capabilities.”

The terms of the transaction were not disclosed and the acquisition remains subject to customary regulatory approvals.

Advisers to Astorg were Jefferies International Limited, Houlihan Lokey, Latham & Watkins, EY, Alvarez & Marsal and BCG. ICIG was advised by William Blair, Freshfields, PwC, ERM and LEK.

Achim Riemann, managing director of ICIG, concluded: “Knowing that CordenPharma is in professional hands with Astorg will give ICIG the opportunity to focus and pursue new opportunities in its core chemical businesses.”

Fraser Tennant