Three private equity firms are exiting Egypt’s largest domestic drugmaker following Valeant Pharmceutical’s definitive agreement to acquire Amoun Pharmaceuticals for $800 million last week. In 2007, Capital Group, Concord International and Citigroup Venture Capital International (which was sold to The Rohatyn Group in 2013) acquired 98% of Amoun for $500 million in one of the largest private equity transactions executed in Egypt at the time.
The acquisition provides Valeant with a platform to expand its presence in the broader Middle East and North Africa regions. The company, which was founded in 1998, is expected to deliver approximately $223 million in revenue this year, and enjoy annual growth rates of 20%. Amoun operates one of the largest, most up-to-date pharmaceutical manufacturing facilities in the region, as well as owning several market-leading brands in therapeutic areas such as anti-hypertensives, broad spectrum antibiotics and anti-diarrheals.
The deal, which is subject to customary closing conditions, is expected to close in the third quarter.