Biofarma is strengthened in the sector of nutraceutical. The company controlled by Ardian together with the Scarpa family has signed the definitive agreement for theacquisition of 100% di U.S. Pharma Lab by the founder and president, Ashok Luhadia, the CEO, Amol Luhadia, and other members of the Luhadia family. In order to strengthen the partnership between Ardian, the Scarpa family and the Luhadia family, the current shareholders of US Pharma Lab will reinvest part of the proceeds in an indirect parent company of Biofarma Group. This was announced in a note by the subsidiary of the French fund Ardian adding that the acquisition will be financed through a combination of debt and equity capital. The closing will be completed in the third quarter of 2023.
The operation of Biofarma (Ardian)
This transaction creates the first toll manufacturer in the nutraceutical industry globally, dedicated exclusively to nutraceutical products with certain distinctive characteristics “that will be able to offer significant additional benefits to new and existing customers through a wide range of technologies nutraceuticals and R&D capabilities, as well as providing a globally harmonized service,” he said Gianfranco Nazis, CEO of Biofarma. And it will be operational in Italy, France, the United States and China.
In order to strengthen the partnership, the Scarpa family and the Luhadia family will reinvest part of the proceeds in an indirect parent company of Biofarma. And following the closing of the acquisition, US Pharma Lab CEO Amol Luhadia and management team will retain their current roles and continue to lead US Pharma Lab in the United States. Amol Luhadia will join the Biofarma board. While Ashok Luhadia will be named president emeritus of US Pharma Lab.
Finally Germano Scarpa, president of Biofarma, underlined that “thanks to this collaboration it will also be possible to accelerate expansion towards new geographic markets and develop new technological capabilities”.
The advisors of the operation
Biofarma was assisted Jefferies as sole financial advisor, Advancy as commercial due diligence advisor, Axis Arbor as financial structure advisor, Latham & Watkins, Gattai & Weil, Gotshal & Manges as as legal advisors and by PWC as advisor for financial, tax and transaction related services. Pharma Lab was assisted by Rothschild & Co as financial advisor, by Sheppard, Mullin, Richter & Hampton as legal advisor, by Walter Advisors Pvt. as financial and transaction services advisor, by Wilkin & Guttenplan and CohnReznick as as advisor for accounting and tax aspects.
