Stiefel enters private equity minority investment agreement

Stiefel Laboratories has announced that the private equity funds of the Blackstone group are to make a $500 million (246.7 million pounds) in the company.

The firm reports that it was considering a number of private equity companies for this investment, opting for the Blackstone group as a result of the compatibility between the two enterprises.

Stiefel will continue to be controlled by the Stiefel family, who will also retain their majority shareholding in the firm, while Blackstone will have the right to designate one member of the board of directors for election.

Charles W Stiefel, president and chief executive officer of Stiefel, described this acceptance of investment from the Blackstone group as a considered business strategy.

“Stiefel Laboratories is on a strong upward trajectory that is sustained by our product development, licensing and acquisition activities,” he said.

He added that taking a private equity partner on board will enhance the ability of the firm to speed up this trend

In April 2007, Stiefel announced a number of organisational changes to the firm that sought to assist the integration of its operations following the purchase of Connetics in 2006.

The company appointed Bill Humphreys to the newly-created role of chief commercial officer, in addition to establishing a global marketing team and boosting the function of its global medical affairs unit.