(Bloomberg) -- Buyout firm Advent International is considering the sale of generic drugmaker Zentiva, in a deal that could value the former Sanofi unit at about €5 billion ($5.4 billion), according to people familiar with the matter.
Advent is working with Goldman Sachs Group Inc. and boutique adviser PJT Partners to explore options for the business that it acquired in 2018, the people said, asking not to be identified as the matter is private. The business is likely to draw interest from other buyout firms and financial investors who are keen to expand in the sector, the people said.
Deliberations are in the early stages and Advent could still decide to keep the assets for longer, they said. Representatives for Advent, Goldman Sachs and PJT Partners declined to comment.
Prague-based Zentiva, which traces its roots back to the Black Eagle pharmacy in the 15th century, operates in more than 30 countries, notably the Czech Republic, Slovakia and Romania, according to its website. In 2018, Advent acquired the business from Sanofi for €1.9 billion. Zentiva last month made a takeover bid for Germany’s Apontis Pharma AG, which has a market value of about €83 million.
Private equity firms have been pouring money into generic drugs as large pharmaceutical companies focus more on developing treatments for rare diseases that require cutting-edge technologies. The health-care industry has seen $253 billion worth of deals announced this year, according to data compiled by Bloomberg.
Stada Arzneimittel AG’s private equity owners have expanded the lineup to help lead a potential initial public offering of the German generic drugmaker, Bloomberg News has reported. In October, Sanofi agreed to sell a controlling stake in its consumer health unit to Clayton Dubilier & Rice in a transaction valuing the Opella unit at about €16 billion.
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