Funds advised by SK Capital Partners (SK Capital), a private investment firm focused on the specialty materials, chemicals and pharmaceuticals sectors, announced the acquisition of a majority shareholding in SEQENS, one of the world’s leading pharmaceutical solutions and specialty ingredients companies. SK Capital is investing alongside several other investors including Bpifrance, the French national investment bank, Nov Santé, Mérieux Equity Partners, Ardian, Eximium and the Company’s management team.

 

Concurrent with the acquisition, SEQENS entered a combination with Wavelength Pharmaceuticals, an existing SK Capital portfolio company which is also a global manufacturer and developer of active pharmaceutical ingredients. Additionally, prior to the closing, SEQENS divested certain non-core mineral specialties assets, including the sodium bicarbonate, soda ash and sodium silicate production facilities in Laneuveville-devant-Nancy (France), Nogent L'Artaud (France) and Jurong Island (Singapore).

 

As a result of these transactions, SEQENS is better positioned as a stronger and more focused player in the global pharmaceutical solutions and specialty ingredients markets, with revenues of €1.1 billion, 24 industrial sites, 10 R&D centers and 3,200 employees located across 3 continents. The Company has a product portfolio of more than 200 active pharmaceutical ingredients, 500 pharmaceutical intermediates, as well as key specialty ingredients and chemicals. SEQENS is investing significantly to support customer growth in both its commercial and development products and technology platforms, including custom polymers, lipids, flow chemistry, high potency APIs, and biocatalysis. The Company is committed to the highest levels of Environmental, Social and Governance standards, with 15 EcoVadis platinum and gold sites across its global network.

 

“We are excited to have the opportunity to support SEQENS with our deep experience and relationships in the pharmaceutical and specialty ingredients markets. SEQENS is well regarded for its recognized know-how, capacity for innovation, global industrial footprint and broad portfolio of products and technologies. The combination with Wavelength further extends these strengths to the benefit of our collective customers and employees. We are enthusiastic about the continuing commitment to SEQENS by its current shareholders, Mérieux Equity Partners, Ardian and Eximium as well as new shareholders Bpifrance and Nov Santé, which will provide the company with a broad range of perspectives and capital sources to further its growth,” said Aaron Davenport, Managing Director of SK Capital.

 

“With the support of its shareholders, SEQENS has become one of the world leaders in pharmaceutical synthesis. The significant investments made over the last five years in our plants, in R&D, and in disruptive technologies allow us to offer the widest range of services and products on the market for the benefit of our customers. With SK Capital, supported by Bpifrance, Nov Santé, Mérieux, Ardian and Eximium and with the combination of Wavelength’s technologies, capabilities, products and recognized know-how, we will accelerate the projects launched in recent months and further strengthen our positions to support our customers worldwide in the development of their projects,” said Pierre Luzeau, President of SEQENS.

 

Piper Sandler together with RBC Capital Markets, LLC and Deutsche Bank acted as M&A advisors to SK Capital on the SEQENS acquisition and Latham & Watkins LLP acted as legal counsel. RBC Capital Markets, LLC acted as financial advisor on the Wavelength contribution into SEQENS and Kirkland & Ellis and Yigal Arnon & Co. acted as legal counsel. Committed debt financing for the transaction was provided by J.P. Morgan, Société Generale, Royal Bank of Canada and Deutsche Bank.

 

Rothschild and J.P. Morgan acted as financial advisors to Eurazeo and Allen & Overy acted as their legal counsel.

 

Nomura acted as financial advisor to Bpifrance and White & Case acted as their legal counsel.