UCB sells specialty generic wing for $1.5 billion

BRUSSELS — UCB, Advent International and Avista Capital Partners last week announced they have entered into a definitive agreement providing for the acquisition of UCB’s U.S. specialty generics subsidiary, Kremers Urban Pharmaceuticals, by Advent and Avista. 

 

UCB will receive gross cash proceeds of $1.5 billion upon closing. UCB plans to use the proceeds to reduce indebtedness and increase the company's capacity strategic investments to further accelerate growth and/or to further strengthen its medicines pipeline.

 

"This is another step for UCB to enhance focus on our core business in neurology and immunology," stated Roch Doliveux, CEO of UCB. Jean-Christophe Tellier, CEO-elect of UCB added: "Our growing core business and UCB's progressing early and late-stage pipeline now allow us to focus even more on providing innovative solutions to patients living with severe diseases."

 

"Kremers Urban has been an important enabler to build UCB's core business. We thank our Kremers Urban colleagues for the excellent performance they have delivered," added Detlef Thielgen, CFO of UCB. "It's now the right time from a value perspective to focus on our core business and to offer Kremers Urban further growth opportunities with two strong organizations that are well equipped to help Kremers Urban continue to grow. UCB's adjusted financial outlook for 2014 is unchanged for the core business; however it is now taking into account the exit of the Kremers Urban business."

 

The purchase price is payable to UCB in cash upon closing. This transaction announced today has been unanimously approved by UCB's board of directors and is expected to close by the first quarter 2015.

 

Lazard is acting as lead financial advisor to UCB, BNP Paribas is acting as additional financial advisor and Covington & Burling is acting as legal counsel to UCB.