Industry Trend Analysis - Acquisition Bids Highlight Strength Of Stada's Business - 13 MAR 2017


BMI View: Potential interest in acquiring Stada Arzneimittel has been building for almost a year, and has now come into the open with these three initial bids. Interest from other firms is certainly a possibility; Stada has weathered the economic storms of its key markets well, and financial growth has been solid. As it stands, Stada is a strong company with a great deal of potential; the firm's prospects suggest that a bidding war in the coming months is all but certain.

Stada Arzneimittel is at the centre of a bidding war. The firm confirmed in February that it had received two legally non-binding expressions of interest regarding a bid for the acquisition of up to 100% of the company's shares, adding that it was weighing its options over how to react. The bids were from Cinven Partners and a second firm Advent International; Cinven came in offering a price of EUR56.00 (USD58.97) per Stada share. Shortly afterwards, Stada announced that its Executive Board had decided unanimously to start open-minded talks with potential bidders. A few days later, Stada reported that it had received a third legally non-binding conditional expression of interest for an acquisition of 100% of its shares for EUR58.00 (USD61.06) per share.

Stada subsequently reported Advent's offer was at EUR58.00 per Stada share also, plus the 2016 dividend payment; the 2015 dividend payment amounted to EUR0.70 (USD0.74) per share. However, this offer was limited to February 27 and subject to approval of Stada's Executive Board. On February 25, Stada reported that its Executive Board and the Supervisory Board created to deal with these expressions of interest had converted their ongoing talks with the three interested parties into a structured bidding process, adding that the process is open to further interested parties to ensure that all potential bidders receive the same level of information and will have the same opportunity to present their plans for Stada. The three existing potential bidders were invited to conduct multistage due diligence. Stada noted that in the interest of all shareholders and stakeholders of the company, further potential for value enhancement would be presented in this process in order to be reflected in possible offer prices. The value of the strategic concepts of the interested parties as well as their willingness to grant protective mechanisms for stakeholders would also be examined.

Stada's Top-Line Financials Are Steady
Stada's FY Results (EURmn)
Source: Stada Arzneimittel, BMI

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