Bain Capital, Cinven emerge victorious in Stada auction
April 11, 2017
European pharmaceutical producer Stada (ETR: SAZ) has agreed to sell itself to Bain Capital and Cinven for €66 per share, representing an equity value of €4.1 billion and an overall valuation of €5.3 billion. The announcement concludes a months-long round of negotiations that began heating up in February, with various reports pegging Advent International, Permira and CVC Capital Partners among the other private equity bidders to display serious interest.
Stada acknowledged receiving at least one other offer from an unspecified consortium, and the bidding process seems to have been a profitable one for the company’s shareholders: Stada increased its transaction value from €4.7 billion to €5.3 billion “in the last few weeks,” according to chairman Ferdinand Oetker. The company’s climbing stock price backs that up, having skyrocketed to a 52% increase in the past five months.
The European pharmaceutical sector has been home to a zig-zagging PE investment count in recent years: 34 in 2013, 25 in 2014, then up to 48 in 2015, then back down to 38 last year, according to the PitchBook Platform. While England and France represent the two most-popular geographies among firms since the start of 2010, Italy ranks third (with more than 10% of all deals) and Spain checks in at fourth (7%)—much larger shares of the European pie than those countries account for among PE deals across all industries.
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