New Zealand Pharmaceuticals sold for $200m - report

Palmerston North-based specialist drug company New Zealand Pharmaceuticals (NZP) has reportedly been sold to Australian private equity firm Archer Capital.

A company spokeswoman told NBR the firm was not commenting on reports of the sale, said to be for about $200 million.

“If they need to make a statement they will but we don't have any comment to make,” the spokeswoman says.

The Australian newspaper reported this morning that an agreement had been reached for Archer to purchase the company, which is 51% owned by Direct Capital.

Director Tony Batterton also declined to comment saying there has been speculation of a sale process for a while.

“If and when a transaction occurs we’d be happy to talk about it.”

Other shareholders include former managing director Dr Richard Garland and his wife Susan who between them hold 22.37%, according to Companies Office records.

NZP is a global leader in bile acids manufacturing for the pharmaceutical industry and exports products to more than 35 countries.

Its products are used in the formulation of medicines made for the treatment of a range of conditions including liver and kidney disorders.

NZP, which was formed 42 years ago, has also diversified into anti-oxidant extracts from blackcurrants used in health supplements and energy drinks through JTB (Just the Berries) and Dextra Laboratories in Reading, England.

In 2013 the company invested $15 million to expand its Palmerston North plant, doubling its storage and distribution capacity as well as boosting output.

According to The Australian report, Archer will inject further capital into NZP to enable the company to expand its product range.

NZP was initially owned by a consortium of meat companies and Tasman Vaccine Laboratories (TVL).

In 1976 ICI NZ Ltd (now Orica) bought TVL including its 40% stake in NZP.

In 1994 the meat industry sold its shareholding to ICI, which then owned 100% of the company, until a management-led buy-out was concluded in January 1998.

In 2005 Direct Capital purchased 51% of NZP.

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