The German pharmaceutical company Stada Arzneimittel AG has entered into negotiations with potential bidders regarding the acquisition of shares against the background of consideration of the sale of assets by the owners of the company. This is reported by foreign media.
The value of the proposed transaction is estimated at 8 billion euros ($8.7 billion). The owners of the company Bain Capital and Cinven initially expected to sell Stada for 10 billion euros, but, from the point of view of potential buyers, the price is at the level of 8 billion euros (10 times more profit) it is more realistic.
Stada has selected 12 financial investors to negotiate, including Clayton Dubilier & Rice, CVC Capital and KKR & Co., as well as GTCR, Canada Pension Plan Investment Board, Nordic Capital, Koch Industries and the Asian investment company Hillhouse.
At the same time, investment companies Bain Capital and Cinven, as owners of Stada, are considering an IPO for the company's shares. A final decision has not yet been made, and Bain, along with Cinven, may simply sell a minority stake or keep Stada in ownership. Bain and Cinven acquired Stada in 2017 for 5.4 billion euros.
Stada Arzneimittel AG is a German pharmaceutical company producing generic and over–the-counter drugs, including cold remedies Snup and Grippostad. The headquarters is located in Bad Filbel (Germany) with production facilities in eight countries: Bosnia-Herzegovina, Vietnam, Germany, Ireland, China, the Netherlands, Russia, Serbia.
In 2023, Stada separated large Russian enterprises, including Nizhpharm, into a separate business as a prerequisite for the sale of the company due to sanctions imposed against Russia.
Stada has been represented in Russia since 2001 under the management of the Stada CIS holding. The company included Nizhpharm, Chemopharm, Skopinfarm and Makiz-Pharma for the production, marketing and sales of medicines. The Stada CIS portfolio includes 150 names of medicines of various classes and forms of release.
Nizhpharm is a pharmaceutical company producing ready-made medicines: ointments, gels, liniments, suppositories, tablets and gelatin capsules.
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According to a Stada representative, last year Stada separated its large Russian divisions into a separate business. This step is considered as a necessary condition for the sale of the company due to the sanctions imposed against the country in connection with the war. Thanks to operations in Europe, the Middle East and the Asia-Pacific region, Stada's profit before interest, taxes, depreciation and amortization increased by 19% last year to 802 million euros.
Bain and Cinven acquired Stada in 2017 in a 5.4 billion euro deal that gave private equity firms control of one of the last independent generic drug manufacturing businesses in Europe. The company, founded in the late 19th century in Bad Wilbel, near Frankfurt, sells prescription drugs and over-the-counter health products, including cold remedies Snup and Grippostad.
