Bain, Cinven Are Said to Pick Banks for €10 Billion Stada Exit

Bain Capital and Cinven have lined up banks to help them weigh options for Stada Arzneimittel AG, including a potential sale of the German drugmaker, people with knowledge of the matter said.

(Bloomberg) — Bain Capital and Cinven have lined up banks to help them weigh options for Stada Arzneimittel AG, including a potential sale of the German drugmaker, people with knowledge of the matter said.

The private equity owners have picked Jefferies Financial Group Inc., JPMorgan Chase & Co., Morgan Stanley and Rothschild & Co., the people said, asking not to be identified discussing confidential information.

Any transaction, which is expected to take place next year, could value Stada at about €10 billion ($10.5 billion) or more, according to the people. Stada’s private equity owners are exploring a range of options, including minority and majority stake sales and a possible initial public offering, they said.

Some of the banks may focus specifically on either a sale or an IPO, the people said. Representatives for Bain, Cinven, Morgan Stanley, Jefferies, JPMorgan, Rothschild and Stada declined to comment.

Bankers eager to finance a potential buyout of Stada are considering putting together a debt package as high as €6 billion, Bloomberg News reported last week. 

Bain and Cinven agreed to acquire Stada in 2017 in a for €5.3 billion deal that gave the private equity firms control of what was one of the last independent generic-drug businesses in Europe. 

Stada was founded in the late 19th century. Based in Bad Vilbel near Frankfurt, the company’s products include Snup, Nizoral and Grippostad. It operates across Europe, the Middle East and Asia Pacific, according to its website. Stada saw earnings before interest, taxes, depreciation, and amortization rose 17% to €875 million last year. 

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