Siegfried’s Acquisition of Two Novartis Plants in Spain

Cuatrecasas and Homburger advised Siegfried on the deal.

Siegfried, the Swiss group specializing in pharmaceutical contract manufacturing, executed the acquisition of the share capital of two Novartis companies, owners of its two biggest pharmaceutical manufacturing plants in Spain. The two plants, owned by the Swiss pharmaceutical group Novartis, are located in El Masnou and Barberà del Vallés, and have over 1,000 employees.

Thanks to this transaction, whose closure is planned for the end of the year, Siegfried, whose objective is to create one of the most competitive global comprehensive networks in the contract development and manufacturing organization (“CDMO”) industry, will (i) have a manufacturing presence in Spain, (ii) improve its worldwide production network, and (iii) have a greater growth potential in profit-earning capacity in the CDMO sector. It will also become a long-term supplier to Novartis, thanks to a manufacturing and supply agreement the two companies signed in the framework of the transaction. The factories, whose employees will continue with the same working conditions, will also manufacture products for third-party companies.

Financing of the transaction is secured by existing credit facilities. Following completion of the transaction, Siegfried intends to issue hybrid convertible bonds for refinancing.

Cuatrecasas advised Siegfried with a team including Madrid office M&A partner Mariano Ucar (Picture), Barcelona office Life Sciences & Healthcare senior associate Ariadna Casanueva, Madrid office M&A associate Carlota Tojo, Barcelona office Public Law partner Juan Carlos Hernanz and Barcelona Office Public Law & Regulated Sectors associate Santiago Tomás Pujol.

The Homburger team was led by Marc Hanslin and included Jeremy Reichlin and Kirsten Schmidt.

Involved fees earner: Ariadna Casanueva – Cuatrecasas; Juan Carlos Hernanz – Cuatrecasas; Carlota Tojo – Cuatrecasas; Mariano Ucar – Cuatrecasas; Marc Hanslin – Homburger; Jeremy Reichlin – Homburger; Kirsten Schmidt – Homburger;

Law Firms: Cuatrecasas; Homburger;

Clients: Siegfried Holding;

Author: Ambrogio Visconti.