UCB to Sell US Specialty Generics Subsidiary for $1.5 Billion
UCB has agreed to sell its UCB's US specialty generics subsidiary, Kremers Urban Pharmaceuticals Inc., for $1.525 billion to to Advent International and Avista Capital Partners, two private equity firms.
The purchase price is payable to UCB in cash upon closing. This transaction has been unanimously approved by UCB’s board of directors and is expected to close by the first quarter 2015, subject to the satisfaction of customary closing conditions.
UCB plans to use the proceeds from this divestiture to reduce indebtedness and increase the company’s capacity for strategic investments, further accelerate growth, and further strengthen its innovative medicines pipeline. “This is another step for UCB to enhance focus on our core business in neurology and immunology,” said Roch Doliveux, CEO of UCB, in a company statement. 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.”