The Strategist

German drugmaker Stada receives $ 3.7 billion offer to purchase

03/15/2017 - 14:11

Two consortia of private investment funds advanced their bids to Stada’s management to purchase this pharmaceutical company for € 3.7 billion.
According to the Financial Times, the first consortium includs Advent International and Permira, and the second consists of Bain Capital and Cinven. Each of them offered to buy out shares of the German generic producer at a price of € 58 each. At the same time, potential buyers specified in their applications that they may raise the offer’s amount if they are allowed to conduct a comprehensive legal examination of Stada. Both proposals should be considered during a meeting of the company's supervisory board, which will be held today.

Earlier in February, the company's Executive Board decided to start negotiations with potential bidders for the purchase of up to 100% of the company's shares. Cinven Partners and Advent International Corporation have provided Stada with offers for the purchase.

In particular, Cinven Partners estimated the company at 3.6 billion euros ($ 3.7 billion), that is, 56 euros per share. However, Stada did not disclose offer of Advent International Corporation, saying that the company acts as the second alleged party to the transaction.

In August 2016, former CEO of Stada Arzneimittel AG, Hartmut Retzlaff, who had headed the company for 20 years, resigned. Retzlaff decided to quit because of disagreements that he had with supervisory board of Stada about the company's strategy in the market. Once Resclaff, who tried to avoid major merger deals, stepped down, the executive board became more open to considering such proposals.

Stada is a German pharmaceutical company founded in 1895. STADA specializes in production and sale of generics and non-prescription drugs. Number of the company’s employees exceeds 8 thousand people. Stada is represented in 30 countries of the world. The company's production facilities are located in eight countries: Bosnia and Herzegovina, Vietnam, Germany, Ireland, China, the Netherlands, Russia, Serbia. Total staff consists of 10.5 thousand people. The company's revenue in 2015 amounted to 2.12 billion euro.