(Bloomberg) -- Stada Arzneimittel AG’s private equity owners are looking to expand the bank lineup for a potential initial public offering of the German generic drugmaker, people familiar with the matter said, even as negotiations over a sale to buyout firm GTCR continue.
Bain Capital and Cinven invited banks to pitch for additional roles, including as bookrunners, for a listing of Stada, according to the people, who asked not to be identified as the information is private.
While Stada’s owners are still in talks about a deal with GTCR, there remains a discrepancy over valuation, the people said. No decisions have been taken and it’s unclear whether Bain and Cinven will decide to pursue a sale or IPO of Stada, they said.
Representatives for Bain, Cinven and GTCR declined to comment.
A sale or a listing of Stada would rank as one of the biggest health-care transactions in Europe in 2024 and cap a yearlong effort by Bain and Cinven to offload the asset. The private equity firms picked Jefferies Financial Group Inc., JPMorgan Chase & Co., Morgan Stanley and Rothschild & Co. to help them weigh exit options, Bloomberg News reported last year. Some of the banks may focus specifically on either a sale or an IPO.
GTCR has been in advanced talks about a potential acquisition of Stada after rival bidder Clayton Dubilier & Rice dropped out of the race, Bloomberg News reported last month. It’s been discussing a valuation of roughly €10 billion ($11 billion) for Stada, the people have said.
Bain and Cinven agreed to buy Stada for €5.3 billion in 2017, a deal that gave them control of one of Europe’s last independent generic-drug businesses. Stada, which was founded in the late 19th century, is based in Bad Vilbel near Frankfurt and makes products including Snup, Nizoral and Grippostad. The company started trading on the Frankfurt Stock Exchange in 1997 and was delisted in 2020 after Bain and Cinven completed the take-private.
Stada’s private equity owners have grown the business through several acquisitions including consumer health and skin care brands from GSK Plc, and the prescription and consumer health business of Biopharma Ukraine. It also bought a portfolio of products from Japan’s Takeda Pharmaceutical Co.
--With assistance from Pamela Barbaglia.
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