Apax Partners Acquires Qualitest Pharmaceuticals and Vintage Pharmaceuticals

Apax Partners Acquires Qualitest Pharmaceuticals and Vintage Pharmaceuticals

17 September 2007

Huntsville, Alabama, USA, 17 September 2007 – Funds advised by Apax Partners (“Apax”) have agreed to acquire Qualitest and Vintage Pharmaceuticals, a leading distributor and manufacturer of generic pharmaceuticals based in Huntsville, Alabama, USA.

Founded in 1983 by Mr. William S. Propst, Sr., Qualitest and Vintage Pharmaceuticals was established to provide quality generic pharmaceuticals at affordable prices. Today, the company produces tablets, capsules, liquids, suspensions, suppositories, creams, and ointments across a portfolio of over 160 products. The business has grown significantly over the past 24 years and is currently ranked among the top ten suppliers of generic pharmaceuticals based on the total number of prescriptions filled.

Commenting on the sale, founder of Qualitest and Vintage Pharmaceuticals, Mr. William S. Propst, Sr., said: “One of the most rewarding experiences of my life has been creating and building Qualitest and Vintage Pharmaceuticals. My goal was not only to provide for my family but to create a great place for people to work and produce high quality pharmaceuticals for the American public at affordable prices. With the help of a group of great employees, we have built an outstanding company which anyone would be proud of. I am certain that this transaction along with the anticipated expansion will ensure the long term employment and prosperity of our employees and benefit this great city.”

Apax Partners has invested over $2.8 billion in the healthcare sector since 1989 and has a team of 13 dedicated investment professionals across its global platform. The team has spent the past two years specifically involved in the generic pharmaceutical industry, working with a range of leading industry executives and operators.

Cathrin Petty, Partner of Apax Partners, commented: "We are very pleased to have reached this agreement with Mr. William S. Propst, Sr. and Qualitest and Vintage Pharmaceuticals’ shareholders. Mr. William S. Propst, Sr. and his family have built a quality business with significant scope for further expansion. The healthcare team at Apax has spent a significant amount of time over the last few years looking at the global dynamics in the generic pharmaceutical industry and we are excited by the opportunity to expand this business both in the US and internationally.”  

Bear, Stearns & Co. Inc. acted as sole financial adviser to Qualitest and Vintage Pharmaceuticals. 

Acquisition financing was provided by RBC Capital Markets as Lead Arranger and Bookrunner with General Electric Capital Corporation committing a lead order as First Lien Co-Arranger and Syndication Agent.

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About Apax Partners

Apax Partners is one of the world’s leading private equity investment groups.  It operates across the United States, Europe and Asia and has more than 30 years of investing experience.  Funds under the advice of Apax Partners total $20 billion around the world.  These Funds provide long-term equity financing to build and strengthen world-class companies.  Apax Partners Funds invest in companies across its global sectors of Tech & Telecom, Retail & Consumer, Media, Healthcare and Financial & Business Services.

For further information, please contact:
Ben Harding
Tel: +44 (0)20 7872 6401
Email: ben.harding@apax.com

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Qualitest Pharmaceuticals

Manufacturer and distributor of generic pharmaceuticals in the US