The leading private equity firm Texas Pacific Group (TPG) acquires 50% of Russia’s largest pharmaceutical distributor SIA International for $800 million in a partial buy-out deal. SIA‘s founder and CEO Igor Rudinsky will retain the other 50% after completion of the deal. The acquisition is the largest ever institutional private equity transaction in Russia.
SIA International, which was founded in 1993, holds 24% share of the Russian pharmaceutical distribution market. SIA reported sales of $2.7 billion in 2007. The Russian pharmaceuticals market reached $12.4 billion, up 16% in 2007.
Igor Rudinsky said in his interview to RBC Daily that the highest priority for SIA International will be to increase its capitalization. The company plans to grow revenues by 15%-20% per year. The half of the deal’s proceeds will be invested into modernization of the company’s logistics and distribution network and 15%-20% will be invested into modernization of production facilities.
Morgan Stanley and PricewaterhouseCoopers acted as advisers to TPG.
In the previous largest private equity deal in Russia in September 2007, the London-based consumer goods private equity firm Lion Capital acquired branded juice producer Nidan Soki for some $500 million.