US private equity fund Advent International has entered into exclusive negotiations with French pharmaceutical group Sanofi to buy its European generic drug division Zentiva.

Advent offers EUR 1.9 billion for Zentiva, which also owns a factory in Bucharest, the former Sicomed. The fund’s offer is firm, binding and fully financed.

Advent will support the Zentiva management team to invest in the company’s operations, production facilities and R&D pipeline, the fund announced. The transaction is expected to close by the end of 2018, subject to finalization of definitive agreements, completion of the appropriate social processes and approval of relevant regulatory authorities.

Advent also invested in another Romanian drug producer in the past, Labormed. The fund sold the business after several years, marking a 20% loss on its initial investment.

editor@romania-insider.com