CD&R Bids for Stada, Valued at €11 Billion Amid Sale Options

CD&R leads bidding for Stada as owners seek €11 billion valuation; KKR and CVC also interested.

By Alex P. Chase

6/11, 13:34 EDT

Key Takeaway

  • Clayton Dubilier & Rice (CD&R) leads the bidding for German drugmaker Stada, valued at €11 billion ($11.8 billion).
  • Current owners Bain Capital and Cinven may consider a stock-market listing or minority stake sale if bids fall short.
  • Bain and Cinven acquired Stada in 2017 for €5.3 billion; the company offers products like Snup, Nizoral, and Grippostad.

CD&R Emerges as Frontrunner

Clayton Dubilier & Rice (CD&R) is currently leading the race to acquire Stada Arzneimittel AG, a German generic drugmaker, as its current owners move closer to making a decision on their exit strategy. According to sources familiar with the matter, CD&R is seen as the party to beat when suitors are expected to submit their offers this week. The sources, who requested anonymity due to the private nature of the information, also mentioned that KKR & Co. and CVC Capital Partners Plc have shown interest in Stada.

Valuation and Sale Expectations

Stada’s private equity owners, Bain Capital and Cinven, are seeking a valuation of approximately €11 billion ($11.8 billion) or more for the business in an outright sale. However, it remains uncertain whether the bidders will be able to meet these expectations. Bain and Cinven are also exploring alternative options, including a potential stock-market listing of Stada, should the bids fall short of their price expectations. Additionally, the buyout firms have been considering a minority stake sale as another possible route.

Historical Context and Company Background

Bain and Cinven acquired Stada in 2017 in a €5.3 billion deal, gaining control of one of the last independent generic-drug businesses in Europe. Stada, founded in the late 19th century and based in Bad Vilbel near Frankfurt, offers a range of products including Snup, Nizoral, and Grippostad. The company has a long-standing history and a diverse portfolio that has made it an attractive target for private equity firms.