LaborMed Pharma Group enters into an agreement to acquire Ozone Laboratories product portfolio

Bucharest, July 24, 2009. LaborMed Pharma Group, one of the leading Romanian generic pharmaceutical companies, has signed an agreement today to purchase the entire portfolio of Ozone Laboratories products as well as the Ozone brand from the shareholders of Ozone Laboratories.

Through this transaction, the LaborMed Pharma Group acquires a portfolio of over 400 branded OTC and prescription generic pharmaceutical products sold across the Central and Eastern European territories of Romania, Poland, Hungary, Bulgaria and the Czech and Slovak Republics. Included are well known brands such as Algozone, Trachisept, Ceclozone, Extremvit and Entran. In 2008 the portfolio had a turnover of Euro 44M.

LaborMed will acquire the Ozone brand and all the associated intellectual property and supply chain routes currently owned and managed by Ozone Laboratories. LaborMed Pharma Group will not buy any of the Ozone Laboratories companies, as this is an asset purchase agreement for the product licenses and marketing authorizations.

"We are very pleased to close this deal which is an important and major step forward for LaborMed, bringing us closer to our goal of expanding across the region and positioning ourselves as a key player in Central and Eastern Europe." – Stephen Stead, CEO and Chairman of LaborMed Pharma Group.

This acquisition of Ozone product portfolio will bring a strong OTC component to LaborMed Pharma Group’s business, supplementing the company’s existing branded generic products and allowing diversification into more therapeutic areas. Additionally, it will bring a regional presence in the Central and Eastern European markets, ultimately enabling LaborMed Pharma Group to sell its extensive pipeline of new products across the region.

LaborMed Pharma Group will immediately take over the distribution of the Ozone products in Romania and will enter into distribution agreements for the portfolio in the CEE countries.

As a result of this acquisition, Labormed Pharma Group expects to recruit an additional 75 people in order to manage the enhanced portfolio. The transition period is expected to be fully completed by the end of this year.

The majority shareholder of LaborMed Pharma Group is Advent International, one of the worlds' leading private equity firms. Commenting on the transaction, Emma Popa-Radu, Managing Director of Advent’s Bucharest office, says: "Advent is delighted to be providing equity finance for LaborMed’s further growth through this acquisition."

The advisers involved in the negotiations were Badea Clifford Chance law firm for LaborMed Pharma Group and Advent International, and CMS Cameron McKenna law firm and Rothschilds Bank for Ozone Laboratories.

LaborMed Pharma SA, headquartered in Bucharest, is a vertically integrated, commercially focused Romanian pharmaceutical company. The company produces a wide range of quality generic medicine, has excellent R&D capabilities and operates world class in-house bioequivalence facilities. LaborMed has the most modern pharmaceutical plant in Romania and a strong field force and distribution network. Established in 1991, the company created a clear brand identity and has a consistent track record of growth and profitability. Turnover in 2008 was approximately Euro 34M. Currently, LaborMed Pharma is a leading generic company in Romania and major supplier of cardiovascular medicines in the Romanian market. In February 2008, the Investment Fund Advent International became the majority shareholder through a leveraged management buy-in transaction. This was the largest transaction of this type to date in Romania.
www.labormedpharma.ro

Ozone Laboratories is a pharmaceutical company specialized in branded RX generics and OTC products. They are present in the following Central and Eastern European countries: Poland, Slovakia, Czech Republic, Romania and Bulgaria. Ozone has a balanced mix of RX and OTC products as well as food supplements focused on fast growing therapeutic areas. The key therapeutic areas of focus include Vitamins, Analgesics, Cardiology, Alimentary Tract and Anti-infectives. Ozone products are manufactured to the highest standards of quality by international partners located Asia, North America and Europe. Turnover in 2008 was approximately Euro 44M.
www.ozonelaboratories.com

Founded in 1984, Advent International is one of the world’s leading global buyout firms, with offices in 15 countries on four continents. A driving force in international private equity for 25 years, Advent has built an unparalleled global platform of over 140 investment professionals across Western and Central Europe, North America, Latin America and Asia. The firm focuses on international buyouts, strategic repositioning opportunities and growth buyouts in five core sectors, working actively with management teams to drive revenue growth and earnings improvements in portfolio companies. Since inception, Advent has raised $24 billion in private equity capital and, through its buyout programs, has completed over 250 transactions valued at approximately $45 billion in 35 countries.
www.adventinternational.com