Houpu Plus makes an additional investment in Ceva Santé Animale of France, and the third - phase fund is expected to return over $500 million in returns to LPs.
Text | Ren Qian
On April 1st, Anyong Waves learned that PAG, a pan - Asian private equity firm (hereinafter referred to as "PAG"), announced today a new round of investment in Ceva Santé Animale, the world's fifth - largest animal health company (hereinafter referred to as "Ceva"). PAG focuses on transformative and large - scale acquisitions, spin - offs, and exclusive investments, and currently manages approximately $15 billion in assets.
This investment is due to PAG's optimism about Ceva's long - term growth potential in the global market, especially in Asia. In this transaction, PAG is participating in this round of investment together with investors such as French investment fund ARCHIMED, the Bettencourt Meyers family, the Merieux Group, EMZ, Sagard, as well as international partners like Singapore's Temasek and American agricultural company Cargill.
Meanwhile, PAG's Fund III will successfully exit following this round of equity restructuring. Through this transaction, PAG's Fund III is expected to achieve a gross distributed - to - paid - in (gross DPI) multiple of approximately 0.5x, about three times the average level of funds of the same vintage in the market. In the first half of 2025, PAG's Fund III is expected to distribute more than $500 million in cash returns to its investors.
In fact, more than a decade ago, PAG's management established contact with Ceva. Since its first investment in Ceva in 2019, PAG has empowered Ceva to grow into the world's fifth - largest animal health company. PAG has played a crucial strategic role in Ceva's globalization process, especially in helping it expand into the Asian market.
Specifically, during the cooperation period, PAG not only supported Ceva in assembling a management team for the Asian market but also introduced new customers to it, including the largest local veterinary drug brands and meat producers. Additionally, PAG helped Ceva establish two joint ventures in the poultry and pig sectors in China and continuously explored potential acquisition opportunities in Asia.
Ceva has approximately 7,000 employees globally and is a leader in animal health, particularly in the field of animal vaccines. Ceva's business spans 47 countries, providing products, services, and equipment to veterinarians, livestock industry professionals, and pet owners worldwide. In 2024, Ceva's revenue reached €1.77 billion, a 14 - fold increase since its establishment in 1999.
Han Gang, Partner and Co - President of PAG, said, "As one of the leading investors in Asia, PAG has always been a long - term partner of Ceva. We are not only proud to have supported Ceva's business layout in the Asian market throughout the process but also deeply involved in its remarkable development over the past decade. We look forward to continuously deepening our partnership with Ceva in the future and jointly exploring broader development opportunities."