German company Stada awaits takeover - Bain Capital and Cinven increase offer to €5.3 bn

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The German generic pharmaceutical company Stada has announced that, after searching for a strategic partner for months, they have received a much better offer that raises the company’s value to about €5.3 billion, including debts.

The consortium Bain Capital and Cinven have offered €65.28 per share and a dividend of €0.72 per share to shareholders, Stada announced.

This consortium, as well as their main competitors Advent and Permira that have also made a joint offer, had previously offered €58 per share for this German company, which valued it at €4.7 billion.

Stada said that the improved offer was 12.3 times higher than the expected EBITDA indicator of the company for the current year, which is above the ratio for companies in this sector (between 9 and 11). The price offered is a premium of 49% over the price offered on 9 December 2016 when the management first announced their intention to find a strategic partner.

Cinven and Bain intend to take over other pharmaceutical companies as well, to create in the medium term a synergy with Stada and justify this large investment, according to Wisebroker

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