Stada Arzneimittel Holds Buyout Talks With CVC Capital
25 May 2016 - 9:50PM
Dow Jones News
FRANKFURT—Stada Arzneimittel AG has been holding informal talks
with private equity firm CVC Capital Partners over a potential
buyout that could value the Germany generic drug maker at roughly
€3.7 billion ($4.1 billion), people familiar with the matter
said.
The talks come at a time when Stada finds itself under pressure
from a German activist investor who is pushing for a wide-ranging
overhaul, as well as other investors who are increasingly
frustrated with management.
Stada's management around Chief Executive Hartmut Retzlaff held
an initial meetings with CVC Capital Partners, people familiar with
the matter said, adding there is no guarantee a deal will take
place. Other private equity firms have also reached out to Stada's
management but it is unclear whether meetings have taken place
yet.
Spokespeople for CVC and Stada declined to comment.
If valued like in line with recent transactions in the sector,
Stada could be worth around €3.7 billion excluding debt, or up to
roughly €60 per share. Financial sources say the high end of that
valuation looks ambitious, however, for example because of Stada's
exposure to Russia.
Write to Eyk Henning at eyk.henning@wsj.com
(END) Dow Jones Newswires
May 25, 2016 07:35 ET (11:35 GMT)
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