Permira is selling Pharmaq, an aquatic health group, to Zoetis for $765 million in an all-equity deal, marking a 3.2x return multiple on invested capital, according to a source familiar with the matter.
Permira IV, a 2006 vintage that closed on €11.6 billion, acquired Pharmaq in 2013 for about €250 million.
Since the acquisition, Pharmaq has increased its research & development investment and expanded and enhanced its offerings for its core salmonid markets, and launched new products for new species in emerging markets.
In the food value-chain, Permira has also invested in Arysta LifeScience, Iglo Group, Netafim, Provimi and Sushiro.
In the first half of this year, Pharmaq revenues increased 24 percent and earnings before interest, taxes, depreciation and amortisation increased 44 percent compared with the values from the first half of 2014.
Permira manages about €25 billion in assets and has made more than 200 private equity investments in the last 30 years in consumer, financial services, health care, industrials and technology sectors.
At press time Zoetis’ stock closed on the New York Stock Exchange at $44.24, up $1.23 or 2.86 percent from the previous close, giving the company a market capitalisation of $21.46 billion.