TPG Capital to buy iNova for $2b-plus;  PEP to co-invest

TPG Capital to buy iNova for $2b-plus; PEP to co-invest

Bids went to owner The Carlyle Group and Pacific Equity Partners on Friday. Sources said the talks with TPG were advanced on Tuesday, with the parties agreeing final terms.

iNova owns a portfolio of medicine and healthcare brands, including Difflam and Demazin, both used for cold and flu relief. Its other products include skincare label Dermaveen and weight management brand Duromine.

Thickins has Mission Control support

It’s a timely deal for TPG, coming as it is seeking to raise $10 billion for a new Asia buyout fund and has head office support for new investments in Australia.

The private equity firm’s local spearhead, Joel Thickins, is understood to be the United States as part of the fundraising. Thickins ran the deal alongside TPG managing director Vinnie Wong.

iNova is expected to go into the new fund, and sit alongside the firm’s other Australian team investments, which include clinical research company Novotech, pets and vets owner Greencross and beverages play Made Group. It typically invests in the consumer, healthcare and business services sectors.

PEP’s expected to retain a non-controlling interest as part of the buyout.

PEP and Carlyle bought iNova in 2017 from North America’s Valeant; it was previously owned by Australian PE firm Archer Capital.

Based in Singapore, iNova, which has a big Australian presence, was pitched to potential buyers with about $150 million in annual earnings. It was expected to fetch a mid-teens multiple.

Jefferies and Credit Suisse ran an accelerated two-part auction over the past two months, seeking to identify a new owner. The business attracted interest from a bunch of big private equity firms, looking to expand iNova’s presence in regional markets.

The auction came to a head on Friday, when binding bids were due.

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