US firm TPG buys 50% of Russia's SIA for $800M

In what is believed to be the largest private equity investment in Russia, the Texas, USA-based firm TPG Capital has made a bid to acquire 50% of Moscow-headquartered drug wholesaler SIA International for about $800.0 million in cash.

The majority owner of the wholesaler is Igor Rudinsky, who will retain the post of chief executive and will join the firm's board as chairman, as well as keeping part of the company in his hands. There will be a total of eight board members, four from each partner.

With the Russian pharmaceutical market valued at about $12.4 billion in 2007, up 16% on the previous year, SIA generates around 90% of its $2.7 billion annual revenues from supplying the country's more than 30,000 pharmacists through a network of 41 regional subsidiaries and has an overall 25% market share. It also supplies hospitals and has its own drug manufacturing facilities.