ICG and Goldman Sachs have jointly provided a €160 million unitranche package to support the refinancing of pharmaceutical manufacturing company Synerlab’s existing debt.
The French company, which has been backed by private equity sponsor 21 Central Partners since 2013, is gearing up for further growth as it has two acquisition opportunities in the pipeline.
Sales of the company have increased 30 percent since the acquisition and stand at €130 million per annum. The company is aiming to increase sales revenue to €200 million within the next two to three years.
A representative for 21 Central Partners said that the firm sought to refinance the debt as market conditions are very attractive at the moment.
The debt refinances previous financing provided by ICG during the acquisition of a stake in the company, as well as the debt inherited from the bolt-on acquisition of Spanish company Alcala Farma completed at the end of 2015, which was provided by Santander.
Unitranches are pricing at LIBOR +650 and the firm said it was able to acquire “more favourable pricing” than the current market rate. He added that a non-amortising debt structure enables the firm to allocate more funding to capital expenditure.
ICG and Goldman Sachs invested pari passu.
Pierre Banzet, chief executive of Synerlab, said: “With 21 Central Partners and Ardian, for several years we have undertaken a new stage in our development both in France and internationally. The refinancing will provide us with additional means to pursue our ambitions.”
Gerard Pluvinet, chairman of 21 Central Partners, said: “This operation strengthens the growth project. The group, which has undergone major transformations in recent years, will be able to accelerate its European development.”
ICG declined to comment.