Advent buys drug ingredient business ICE, valuation said to be €600m

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Advent International has tapped its $17.5bn GPE IX fund to buy drug ingredient business Industria Chimica Emiliana.

Financial details of the deal were not disclosed, but a Reuters report from June pegged a potential buyout at about €600m.

ICE is a global leader in the production of UDCA, an active pharmaceutical ingredient primarily used in drugs that treat gastroenterological and chronic diseases.

Advent has acquired the company from the Bartoli family, who founded the firm in 1949.

Francesco Casiraghi, a managing director at Advent, said, “Already a key player in an attractive market supported by strong fundamentals, we see significant growth opportunities for this business.

“ICE’s global positioning as a trusted partner of pharmaceutical companies and suppliers, and integrated business model across the value chain serve as a strong basis for ICE’s future development.”

Advent said the UDCA market was attractive and growing segment addressing gastroenterological conditions, which are increasing in prevalence due to macro trends such as obesity, lifestyle changes and an aging population.

The firm has huge experience in the healthcare sector, having invested $7bn in 42 companies over the last 28 years.

Recent healthcare investments have included BioDuro, a leading global life sciences contract research and development organization based in China, and Zentiva, a leading European generics pharmaceutical company.

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