Advent’s Portfolio In Romania Includes Only Two Companies After Two More Exits

Over the past 15 years, Advent made eight investments locally and its portfolio currently includes two companies, private healthcare provider Regina Maria and building material producer Ceramica Iasi.

According to unquote.com, which cites Advent managing partner Joanna James, the fund will be less active in Central and Eastern Europe and will sign deals selectively.

Investment funds have started avoiding Eastern Europe and are focusing on Asia. In April, Advent said it would open an office in China.

Advent opened its Romanian office in 1998 and its portfolio once included MobiFon (Connex) and Terapia.

The sale of pharmaceutical company Terapia to Ranbaxy for $324 million in 2006 is seen as one of the most significant deals inked by an investment fund in Romania. The sale of Labormed and Deutek is far from having the same prominence, as the transactions were made “under pressure”, according to market sources.

According to the sources, the price Advent obtained for Deutek from Axxess Capital is lower than the sum the fund paid for the company in 2005.

Deutek is the fifth largest paint maker in Romania. Advent bought it in 2005 from German group Meffert and businessman Marius Ivan, in a deal valued at EUR18 million at that time. Deutek has registered net loss of about EUR15 million over the past four years. In 2012, its turnover amounted to EUR26 million and its loss reached EUR5.6 million, according to Finance Ministry data.

In 2008, Advent bought Labormed for over EUR120 million. Labormed is currently owned by Alvogen.

Advent was set up in 1984 and is one of the world’s largest investment funds, with assets exceeding $32 billion and investments in about 300 businesses.

Advent’s Investments in Romania