Caisse de dépôt et placement du Québec (CDPQ), a Canadian long-term institutional investor, has agreed to make a minority investment of $500m (£413.8m) in Mexican pharmaceutical company Sanfer.
The investment secured by Sanfer is expected to help the company implement its continued expansion plans in Mexico and in other parts of Latin America. Additional terms of the transaction were not revealed by the parties.
The Mexican pharma company has presence in more than 25 countries in Latin America. The company, which has been in operations for nearly 80 years, promotes health products covering more than ten therapeutic fields.
The company claims to have made more than 100 brand acquisitions, purchased eight pharma firms apart from introducing more than 100 new products across Mexico and Latin America.
Sanfer chairman and CEO Ricardo Amtmann said: “The addition of CDPQ as a strategic partner marks an important moment for Sanfer as we look to further strengthen our position across Mexico and Latin America.
“CDPQ, together with our existing partner General Atlantic, will contribute invaluable expertise as we pursue strategic growth opportunities that will allow Sanfer to meaningfully scale the business and deepen our reach with customers. We are honored to have CDPQ’s trust in our Company and to see their commitment to the Latin American region.”
General Atlantic, which is the other main stakeholder of the Mexican company, will retain a significant minority stake. The global private equity firm made its first investment in the pharma company in 2014.
CDPQ executive vice-president and private equity head Stephane Etroy said: “Our partnership with Sanfer is an opportunity for us to grow our exposure to targeted countries in Latin America, while investing in a key sector of these economies.
“We are proud to be partnering with a company of Sanfer’s caliber, alongside General Atlantic. We are confident in the pharmaceutical industry’s long-term outlook and look forward to working with Sanfer’s leadership team to capitalize on growth opportunities.”
Subject to receipt of customary regulatory approvals, the transaction is likely to be closed later this year.