TPG in Largest Ever Russian Private Equity Deal

April 15, 2008

Cleary Gottlieb is representing long-time client TPG in its acquisition of 50% of Russian pharmaceutical distributor SIA International Ltd. for approximately $800 million. The wholly equity-funded deal is the largest private equity investment in Russia to date.

The deal makes TPG a joint venture partner with Igor Rudinskiy, SIA’s founder and majority owner, who will control the other 50% of the company.

SIA is the largest pharmaceutical distributor in Russia. It supplies pharmaceuticals to over 30,000 Russian pharmacies and hospitals on a daily or weekly basis through its network of 41 regional subsidiaries. In 2007 SIA’s revenues were $2.7 billion. Almost one quarter of pharmaceuticals in Russia are distributed through SIA. The size of the Russian pharmaceuticals market was approximately $12.4 billion in 2007, which represents 16% growth from 2006.