STADA ACCEPTS
Bain Capital and Cinven gain control of one Europe’s last independent generic-drug businesses
BERLIN copycat medicines and marks another step in the consolidation of the generics industry.
Stada eluded a takeover for years thanks to an unusual shareholder structure and entrenched management, until investor Active Ownership Capital Sarl led a revolt last year.
Last August, former chief executive officer (CEO) Hartmut Retzlaff resigned after 23 years at the helm.
New CEO Matthias Wiedenfels pledged to make Stada more profitable. In February, the offers from private equity began flowing, and weeks of talks ensued with firms including Advent International Corp, Permira, and Cinven and Bain Capital.
“We have reached a result with a high level of certainty in the transaction and a secure financing for the offer,” said Wiedenfels. He said he hoped to remain in the CEO position after the deal was completed.
Stada shares rose almost 11 per cent to €64.62 at 9.17am in Frankfurt trading. It has jumped 79 per cent in the last year.
Last month it raised its medium-term financial outlook, saying it aimed to lift sales to as much as €2.7 billion in 2019.
Bain Capital and Cinven agreed to honour the company’s existing union contracts and refrain from business-related layoffs for four years, other than those already planned, said Stada. The location of its headquarters and key business units will remain unchanged. Bloomberg