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EQT makes buy-out offer for Karo Pharma

Private equity fund EQT has made a cash offer for the remaining shares in Swedish biopharmaceuticals group Karo Pharma.

EQT currently owns 86% of Karo Pharma.

The total value of the offer is 2.23 billion Swedish crowns ($215.15 million), valuing Karo Pharma at 16.4 billion, EQT subsidiary Karo Intressenter said in a statement.

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In 2018, EQT VIII, through Karo Intressenter, announced an offer to the shareholders of Karo Pharma to acquire all outstanding shares in the Company. With an ownership level of approximately 66.5 percent after an extended acceptance period, Karo Intressenter closed the offer in February 2019.

“Looking ahead, we see great potential in continuing to develop Karo Pharma’s product portfolio and commercial capabilities, expanding into new markets, channels and categories and increasing investments into the platform and via M&A.”

“Having worked closely with Karo Pharma’s management, board of directors, and employees for the past three years, we believe that the company today is in a good position to enter its next phase of development. Looking ahead, we see great potential in continuing to develop Karo Pharma’s product portfolio and commercial capabilities, expanding into new markets, channels and categories and increasing investments into the platform and via M&A. However, for Karo Pharma to reach its full potential we are convinced that its continued value creation journey is best suited to a private environment,” says Erika Henriksson, Partner at EQT Partners, Investment Advisor to EQT VIII, and member of Karo Pharma’s Board of Directors.

Photo: iStock

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