Arkopharma acquired by Dermapharm

Securing an additional turnover of €150–250M, the German pharmaceutical group Dermapharm Holding SE officially takes control of the French laboratory Arkopharma from the European private equity firm Montagu. Concluded in early January 2023 following an exclusive negotiation phase initiated during the summer, this cross-border leveraged buyout exit structurally transfers the entirety of the target's holding entity, Apharma TopCo SAS. At the time of the transaction, Arkopharma demonstrated strong profitability metrics, recording an adjusted EBITDA of €25–50M while maintaining a consolidated [members only]. For the exiting financial sponsor, this divestiture marks the conclusion of an eight-year investment cycle that commenced with the initial 2014 buyout orchestrated alongside the historical founding family. The strategic rationale articulated by the acquiring corporate board explicitly focuses on establishing a massive structural bridgehead within the French consumer healthcare market while accelerating the deployment of medical devices across Western and Southern Europe via an established sales network. Furthermore, the parent company intends to leverage this newly integrated botanical expertise to directly offset anticipated revenue declines stemming from the cessation of pandemic-era vaccine production contracts involving BioNTech. The execution of this complex cross-border acquisition relied on an extensive consortium of specialized transaction advisors. The buy-side financial and legal frameworks were respectively structured by Deloitte and Bredin Prat, with supplementary counsel from Martius Rechtsanwälte. Conversely, the exiting shareholder consortium and the targeted management team retained Rothschild & Co to orchestrate the competitive auction process. Sell-side legal structuring was exclusively managed by Weil Gotshal & Manges, while comprehensive due diligence procedures were rigorously executed by PwC Deals for financial audits, PricewaterhouseCoopers Advisory for environmental assessments, PwC Société d'Avocats for legal audits, and Deloitte Monitor for strategic evaluations. Through this definitive capital transition, the acquiring industrial platform strictly internalizes the required research capabilities to dominate the European over-the-counter natural medication segment.

It is worth noting that the fund Montagu Private Equity took control of Arkopharma through an LBO in 2014.