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PharmaZell going up for sale: Reuters
Posted on Thursday, 07 November 2019 11:55
Private equity firm Deutsche Private Equity has put German pharmaceutical ingredients manufacturer PharmaZell up for sale, people familiar with the matter told Reuters, without disclosing a possible price.

The buyout firm, which paid an unknown amount for the potential target in 2014, has hired advisor Rothschild to assist on the planned disposal, according to the sources.

Insiders close to the situation said an auction is likely to begin later this year.

PharmaZell is made up of three core brands, including Farmabios and PharmaChol, as well as its eponymous banner, which supply the pharmaceutical industry with active pharmaceutical ingredients and natural source materials.

Founded in 1946, the company has over 900 staff at production facilities in Germany, India and Italy and secures the industry’s supply chain as trusted drug substance suppliers.

According to its website, PharmaZell generated revenue of more than EUR 170.00 million in 2018, with a strong annual growth rate over the last ten years.

The sources noted that the group posted earnings before interest, taxes, depreciation and amortisation of EUR 50.00 million.

After being taken over by Deutsche Private Equity in 2014 from Ergon Capital Partners, PharmaZell was merged with Italian peer Farmabios.

The company was reportedly valued at EUR 200.00 million at the time.

Zephyr, the M&A database published by Bureau van Dijk, shows that pharmaceutical and medical manufacturers based in Western Europe have been targeted in 353 deals worth an aggregate EUR 113.23 billion announced since the start of 2019.

In the largest of these, AbbVie, via Venice Subsidiary, agreed to acquire Ireland-headquartered Allergan for USD 63.53 billion.

This transaction is also the second-biggest signed off globally in the year to date, behind Bristol-Myers Squibb’s USD 74.00 billion acquisition of Celgene.

It is nearly three times larger than the number two deal by value targeting pharmaceutical players in Western Europe as Pfizer, via newly formed company Upjohn, is buying Netherlands-based Mylan for USD 22.50 billion.

© Zephus Ltd