Bain and Cinven win bidding battle for German drug maker Stada
Stada stoked more competitive bidding over the weekend to drive up the offer
Frankfurt — Buyout groups Bain Capital and Cinven won an auction for German drug maker Stada on Monday after a surprisingly large increase on a previous bid valued the company at about €5.3bn. The private equity consortium is offering €65.28 per share and a dividend of €0.72 per Stada share, the company said in a statement on Monday, earning the backing of Stada management. Bain and Cinven had been vying with a rival consortium, which is comprised of Advent and Permira, for control of generic drug maker Stada. Both suitors had previously made takeover offers at €58 per share, which valued the company at €4.7bn including debt. Stada said the improved offer valued it at 12.3 times its expected 2017 earnings before interest, taxes, depreciation and amortisation (ebitda), above trading multiples among its peer group of 9-11 times. It carried a premium of 49% over the December 9 share price, before the first report of a takeover approach, it added. Sources had said last week that final b...
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