After an auction between some of the main global players in the venture capital sector, the KKR fund – an acronym for its founding partners: Kohlberg, Kravis and Robertsse – has finally prevailed in the bid for the fertility firm of Valencian origin Ivirma. The company’s management team has opted for the US manager’s offer, which could amount to between 2,500 and 3,000 million euros, according to market sources.
This figure, which includes both capital and debt, places the operation among the largest in the history of venture capital in Spain. A little over two years ago, the investment firm The Carlyle Group completed the acquisition of 37% of the oil company Cepsa in an operation that valued that minority shareholding package at around 4,000 million euros. In 2020, KKR itself and the Providence and Cinven funds paid 3,000 million for Másmóvil.
The managers have valued KKR’s experience in the health sector
The effervescence of large operations continues, without either the covid, first, nor the uncertainty derived from the war or the upcoming interest rate hikes, later, having diminished investor appetite. On the contrary, at a time when financial assets are threatened by instability, the managers –many of them, with full portfolios after nurturing their funds– are going all out.
In the case of Ivirma, the managers have valued KKR’s experience in the health sector, its recent investment in GeneraLife, which could generate synergies, and its strong presence in the North American market.
The process has been very busy. KKR has prevailed in the final offer in what has been one of the year’s largest operations in the private equity sector in Spain and has aroused great interest among the large international funds. According to sources close to the process, KKR is making this acquisition through its Core Investments strategy, which seeks longer-term opportunities.
Likewise, they affirm that the union of KKR and Ivirma will allow the company to be in a position of advantage to face the coming years, being in a position to achieve strategic advantages from the point of view of synergies and strategic value. Ivirma’s medical and management team will continue to be part of the shareholders and lead the business, although KKR will decide.