Offer for Germany’s leading generic producer

The management of Stada Arzneimittel AG, Germany’s leading generics producer, has accepted a €4.1 billion offer for the company from two private equity firms, Bain Capital Private Equity LP of Boston Massachusetts, US and Cinven Partners LLP of London, UK.

The firms were making a public offering for the company at €65.28 per share plus a 72 cents dividend during the week of 10 April.

On 13 April, Stada’s stock closed at €64.61 per share on the Frankfurt Stock Exchange, suggesting that shareholders were tendering their shares. The private equity firms are requiring that 75% of the shares be tendered for the offer to become valid.

The competing bidder for Stada was a coalition consisting of the private equity firms Advent International Corp of Boston and Permira Advisers LLP of London but the German company’s management said the Bain and Cinven offer was more favourable. 

Stada has its origins in the need of German pharmacists in the late 19th century to economically produce medicinal preparations. By 1908, the job of producing identical preparations with identical packaging was turned over to the newly formed Professional Community of German Pharmacists, whose initials St.dA became the brand name of the company Stada.
Stada had its ups and downs during the Great Depression and the two world wars, but by the 1970s it was able to start setting up offices around the world and enhance its growth through acquisitions. Today the company has a turnover of around €2.15 billion, of which 59% consists of traditional generics and 41% branded products. Net income in 2016 was €177.3 million. As of 31 December 2016 the company employed 10,900 people worldwide.

The Bain-Cinven agreement with Stada provides for the continuation of the company in Germany and makes certain assurances regarding its employees. So far, there is not even speculation as to who will buy the company from Bain-Cinven.

Stada announced the public tender offer on 10 April 2017.

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