Houlihan Lokey Advises PharmaSGP

Houlihan Lokey is pleased to announce that PharmaSGP Holding SE (PharmaSGP) has successfully raised €160 million in financing, including €135 million in syndicated debt financing, with a club of four banks. The transaction was signed and closed in July 2022.

PharmaSGP is a leading consumer health company with a diversified portfolio of over-the-counter (OTC) pharmaceuticals and other healthcare products that are marketed with a focus on the pharmacy distribution channel. These products are mostly based on natural active pharmaceutical ingredients with documented efficacy and few known side effects.

Following strong organic growth and the successful acquisition and integration of the four OTC brands, Baldriparan®, Formigran®, Spalt®, and Kamol® from the GlaxoSmithKline Group (GSK) in the second half of 2021, PharmaSGP achieved record sales of €65.3 million in the past fiscal year. In 2022, PharmaSGP is targeting sales between €78 million and €82 million, with an adjusted EBITDA margin of 30% to 33%, measured against sales.

As a more recent milestone, a five-year syndicated financing with four banks has now been successfully raised. With the new syndicated loan, the former bridge facility of €85 million, which was used to finance the GSK acquisition, has been replaced and transferred into a long-term structure. Additionally, PharmaSGP secured financing of €75 million for further acquisitions to strengthen its unique European sales platform.

Houlihan Lokey provided debt advice on all commercial aspects of the financing transaction and supported PharmaSGP on the structuring of a competitive financing package with highly attractive and flexible terms to support the company’s growth strategy.