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H.I.G. Capital Completes Strategic Investment in Halex Istar and Isofarma

RIO DE JANEIRO – March 17, 2016 – H.I.G. Capital ("H.I.G."), a leading global private equity investment firm with $19 billion of equity capital under management, is pleased to announce it has completed a strategic investment in Halex Istar (“Halex Istar” or the “Company”) to facilitate the acquisition of Isofarma (“Isofarma”), both leading manufacturers of pharmaceutical parenteral solutions in Brazil.

Headquartered in Goiânia and with nearly 60 years of history, Halex Istar is one of the leading domestic manufacturers of large volume parenteral solutions (“LVPS”) with presence in all Brazilian regions. With cutting-edge technology, a robust operating structure and a highly effective sales force, the Company offers a broad portfolio of medicines to hospitals and clinics throughout Brazil. Isofarma, based in Fortaleza and with over than 15 years of history, also operates in the same segment, but with an emphasis on small volume parenteral solutions (“SVPS”). It also has a broad national reach.

The identified synergies will enable both companies to better serve their existing customers, providing a wider range of products, as well as improved efficiencies.

“In order to expand our business and increase Halex Istar’s presence in the market, we were looking for a partner that is strong in all aspects and we chose H.I.G., due to its global investment capabilities and its strong presence in Brazil. We are confident that we will achieve our goals in a short period of time," said Zanone Alves de Carvalho, founding partner of Halex Istar.

Fernando Marques Oliveira, Managing Director and Head of H.I.G. Brazil and Latin America, said: “We are very pleased to be part of the continuing history of Halex Istar. Along with Isofarma, we believe in the enormous potential of the Company. Despite a challenging macroeconomic scenario, both companies have been growing steadily over the past few years. With the support of a highly qualified management team and with the shareholders’ deep industry knowledge, we will accelerate the Company’s organic and inorganic expansion.”

About Halex Istar
Founded in 1959 and headquartered in Goiânia, Halex Istar operates in the parenteral solutions segment both with large and small volumes. Halex Istar broad portfolio ranges from products for electrolyte and energetic balance (sodium chloride, glucose and others) and antibiotics. The Company has over 2,000 customers and approximately 570 employees. For more information visit http://www.halexistar.com.br.

About Isofarma
Founded in 1997 and headquartered in Fortaleza, Isofarma operates in the parenteral solutions segment, with an emphasis on small volume parenteral solutions (“SVPS”). The Company has strong presence in the northeast and southeast regions and has over 900 employees. For more information visit http://site.isofarma.com.br/site.

About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with $19 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris and Rio de Janeiro, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/value-added approach:

  1. H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
  2. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
  3. Other H.I.G. funds invest in various real assets, including real estate and shipping.

Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.

* Based on total capital commitments to funds managed by H.I.G. Capital and its affiliates.