GERMANY: Stada Accepts €5.3bn Private Equity Takeover Offer

Stada, the generic drugs maker, has accepted a €5.3bn takeover bid (including debt) from private equity giants Bain Capital and Cinven.

Stada was one of the last remaining independent generic-drug businesses in Europe, and the sale follows weeks of talks with several potential buyers. CEO Matthias Wiedenfels, who took over recently, noted: “We have reached a result with a high level of certainty in the transaction and a secure financing for the offer”.

The offer price of €65.28 plus a dividend of €0.72 per share, is around 49% higher than when takeover reports first emerged in December. Stada said its Supervisory and Executive boards are expected to recommend the offer.

The suitors have said they will not relocate Stada’s headquarters and key business units, will honour existing union contracts, and will not announce any business-related layoffs for four years (other than those already planned).