OSAKA, Japan, and ZURICH, May 19, 2011 /PRNewswire/ -- Takeda Pharmaceutical Company Limited ("Takeda", TSE: 4502) and Nycomed A/S ("Nycomed") jointly announced today that Takeda has reached an agreement with the shareholders of Nycomed in which Takeda will acquire the Zurich-headquartered company for 9.6 billion Euro on a cash-free, debt-free basis. The boards of directors of each company unanimously approved the transaction which is expected to be completed within 90 to 120 days, making it a wholly owned subsidiary of Takeda, subject to antitrust clearance. The purchase would exclude Nycomed's U.S. dermatology business.
The sellers are comprised of a consortium of private equity funds led by Nordic Capital Funds V and VI ("Nordic Capital"), including, DLJ Merchant Banking Partners (a Credit Suisse affiliate), Coller International Partners IV and V, and Avista Capital Partners.
This transformational transaction is a strategic fit with Takeda's sustainable growth strategy as it was outlined in its 20112013 Mid-Range Plan. Takeda has its strong presence in the Japanese and U.S. markets, while Nycomed has a significant business infrastructure in Europe and high-growth emerging markets that will enhance Takeda's regulatory development expertise and commercialization capability. The acquisition includes the roflumilast franchise (Daxas®; trade name in Europe), a first-in-class treatment for chronic obstructive pulmonary disease (COPD), which is expected to be a major source of revenue growth for Takeda. In addition, the acquisition will bring Takeda an immediate and stable increase in cash flow with Nycomed's more than 2.8 billion Euro in annual revenue, excluding the U.S. Dermatology business.
"Takeda is committed to transforming our organization through the acquisition of Nycomed. Nycomed enables Takeda to maximize the value of our portfolio and gives us an immediate strong presence in the high-growth emerging markets while doubling Takeda's European sales," said Yasuchika Hasegawa, President & CEO of Takeda. "Nycomed's strength in a geographically wide range of markets and its diverse talent base will be a strong driver to helping us realize our important mission of striving toward better health for patients worldwide through leading innovation in medicine."
Nycomed, headquartered in Zurich, Switzerland, is a privately-owned pharmaceutical company with strong presence in Europe and emerging markets. Nycomed's diversified product portfolio includes both established prescription pharmaceutical products as a primary revenue driver, and over the counter (OTC) products. It has a strong European commercial network and is aggressively growing in emerging markets which account for more than 50 percent of global pharmaceutical growth. Its key success factors include the utilization of its broad product range and the application of commercialization and development strategies that fit with the market environment and medical needs in each individual country and region.
"The combination of Takeda's successful track record of innovation with Nycomed's efficient commercialization and manufacturing infrastructure will create a global player with a phenomenal ability to bring medicines to patients and healthcare providers around the world," said Hakan Bjorklund, Chief Executive Officer of Nycomed.
Through the addition of Nycomed's remarkable entrepreneurial corporate culture to Takeda's corporate culture, nurtured for more than two centuries, Takeda is aiming to become a truly global pharmaceutical company with a diversified talent base capable of conducting global business effectively.
Since being acquired by Nordic Capital along with co-investors in 2005, Nycomed has followed an aggressive growth strategy that has propelled the company to an international player with a broad and strong market presence.
"The investment in Nycomed has outperformed even the highest expectations. We are proud to have contributed to Nycomed's development into a world-class pharmaceutical company with a strong market position and product pipeline. I feel confident that Takeda will be able to further build upon Nycomed's potential and create an even stronger company with a global market presence," said Kristoffer Melinder, Managing Partner of NC Advisory AB, advisor to the Nordic Capital funds.
1. Expected benefits
- Strong fit with Takedas sustainable growth strategy
- Strengthens pan-European platform
- Leverages Nycomeds emerging markets strength to drive growth
- Allows Takeda to maximize the value of its portfolio supported by enhanced development expertise and commercialization capability in Europe and emerging markets
- Provides a significant growth driver with roflumilast (Daxas® tradename in Europe)
- Immediate financial contribution(*)
- More than 30% increase of annual revenue
- More than 40% increase of operating income (excluding special factors derived from business acquisition)
- More than 30% increase of EPS (excluding special factors derived from business acquisition)
(*) Comparison with the original outlook of fiscal 2013 in 2011-2013 Mid-Range Plan, announced on May 11, 2011
- Complementary cultures and diverse talent pool
2. Acquisition summary
Acquiring company: Takeda Pharmaceutical Company Limited
Shareholders of Nycomed include Nordic Capital Funds V and VI, DLJ Merchant Banking Partners (a Credit Suisse affiliate),Coller International Partners IV and V, and Avista Capital Partners, Nycomeds management and employees team
Number of outstanding shares: 13,778,110 shares (as of December 31, 2010)
Payment: Cash (Takeda will finance part of the transaction through a loan for about 600 to 700 billion yen)
Acquisition amount: 9.6 billion Euroinclusive of the Nycomeds net debt
(Fairness opinions from both Deutsche Securities Inc. and Nomura Securities Co., Ltd. have been obtained.)
Planned date of completion: End of September 2011
Note: Shares of Nycomed US Inc., which focuses on specialty pharmaceuticals in dermatology, are excluded from the share purchase agreement.
3. About Nycomed
Corporate name: Nycomed A/S
Headquarters: Zurich, Switzerland
Representative: Hakan Bjorklund (CEO)
Established: 2005 (Operation started in 1874)
Capital stock: 98,836 Euro
Shares: non-listed ordinary shares
Fiscal year: End of December
No. of employees: approximately 12,500 (including Nycomed US)
Relationship with Takeda: no matters to report regarding capital, personal and transactional relationship with Takeda
Financial performance of the Nycomed Group for the recent two years
including Nycomed U.S. (unit: million Euro)
Fiscal year 2010
Fiscal year 2009
Gross profit Margin
EBITDA after adjustment(*)
(*) After adjustment of the difference such as those derived from evaluation of
inventories in accordance with "Accounting Standard for Business Combinations"
EBITDA: earnings before interest, taxes, depreciation, and amortization
Takeda will announce the financial impact which this transaction will have on its consolidated financial statements of its fiscal year 2011 together with the revised financial outlook of the year.
Takeda Media and Investor Contacts:
For Japanese Media and Global IR Inquiries:
Ph: +81 3 3278 2037
For U.S. Media Inquiries:
Ph: +1 224 554 3185
For European Media Inquiries:
Ph: +44 20 3116 8037
Nycomed Media and Investor Contacts:
For media inquiries:
+41 44 555 15 10
Ph: +41 44 555 15 01
Ph: +41 44 555 11 04,
Seller consortium Media and Investor Contacts:
Nordic Capital Fund V, Nordic Capital Fund VI
Ph: +46 703 11 99 60
DLJ Merchant Banking Partners
Ph: +1 212 325 7396
Coller International Partners Capital
Tel: 44 7971 224 706
Avista Capital Partners
+1 212 521 4800
Conference Call and Webcast Information
Takeda will host an investors conference call in English at 10:00 p.m. JST (9:00 a.m. EDT) to discuss the transaction.
[Start Time / Dial-in / Pass code]
To avoid heavy traffic on telephone lines, please dial in before 10:00 p.m.
After the presentation, you can take part in the Q&A session, please agree that this presentation and Q&A session will be broadcasted on the internet.
Thursday May 19, 2011 (JST) at 10:00 p.m.
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