DLA Piper advises Philip Morris International on USD820 million acquisition of Fertin Pharma

DLA Piper has advised Philip Morris International (PMI) on the acquisition Fertin Pharma A/S (Fertin Pharma), a leading developer and manufacturer of pharmaceutical and well-being products based on oral and intra-oral delivery systems.

The transaction has an enterprise value of c. USD820 million and represents a significant milestone in the delivery of PMI's goal to become a majority smoke-free business by 2025. The acquisition is expected to close in the fourth quarter of 2021.

Fertin Pharma is a privately held company with more than 850 employees with operations in Denmark, Canada, and India. It specializes in the research, development and production of gums, pouches, liquefiable tablets and other solid oral systems for the delivery of active ingredients. The company and its employees bring significant scientific experience and know-how to the development of innovative solutions and in 2020 generated net revenues of c. USD160 million. The company is currently owned by the global investment organization EQT and Bagger-Sørensen & Co and upon completion of the acquisition will become a wholly owned subsidiary of PMI.

The DLA Piper Corporate team was led by partners Tom Heylen and Tim Baumgartner, assisted by Legal Director Laura Marcelli and Associate Miriam Gott. The transaction required specialist support from teams in Intellectual Property and Technology led by Global Co-Chair of Life Sciences Marco de Morpurgo with partners Richard Taylor and Mark Dewar, in addition to partners Sarah Smith leading on all matters relating to antitrust, and Jeremy Sher in respect of litigation. Cross-practice teams from DLA Canada and DLA US were also involved in the transaction.

Tom Heylen said “Our ability to work seamlessly across practice groups and across various jurisdictions was central to the delivery of this important strategic acquisition for PMI, and its success is a testament to the team. As a complex transaction we were able to demonstrate our significant experience in the Life Sciences sector whilst ensuring due diligence and transaction workstreams were fully aligned throughout the process. We look forward to supporting PMI on its goals going forward.”

Gorrissen Federspiel and AZB & Partners advised on the Danish and Indian aspects of the transaction, respectively.