Warburg said the purchase price represents JHP holding no debt and no surplus cash, adding that the current management team would continue to hold an interest in the business.
The company produces and sells sterile injectable drugs in the US market, which it values at about $30bn.
Warburg managing director Elizabeth Weatherman said, “We have been impressed with the financial performance and quality record of JHP over the last five years, and are very pleased to contribute to the further development of the company.
“The management team has done an excellent job building the company and we are delighted they are remaining with the business and co-investing.
“JHP represents an attractive investment opportunity for us and we have reserved a sizeable amount of additional capital to fund growth opportunities that will transform the business well beyond what it is today.”
Warburg is understood to be eyeing one of the biggest private equity exits since the financial crisis with a $10bn sale of US contact lens maker Bausch & Lomb.
The firm has hired Goldman Sachs to run the sale after receiving expressions of interest from pharmaceutical groups, according to the Financial Times, which said in December the firm was also considering an IPO.
Warburg bought the New York-headquartered business for $4.5bn in 2007, including about $830m of debt, through a take-private deal.
Copyright © 2013 AltAssets