Stada Pharma, the pharmaceutical giant, is eyeing a comeback on the stock market.
Pharma titan Stada is eyeing a grand return to the stock market, aiming for a blockbuster IPO worth billions in Frankfurt. The financial bigwigs, Bain Capital and Cinven, who acquired Stada in 2017 for a whopping €5.3 billion, are reportedly planning to list the company at a valuation nearing €10 billion.
Preparations for this monumental move are underway, with Stada reorganizing its management structure. An industry veteran, Andreas Fibig, is set to assume the role of independent chairman of Stada's supervisory board. Fibig, a seasoned professional with stints at firms like Novo Nordisk, International Flavors & Fragrances, and Bayer HealthCare Pharmaceuticals, will take the helm. The current CEO, Peter Goldschmidt, will continue to steer the global operations.
No concrete plans regarding the company's trajectory have been finalized yet, but various possibilities are being weighed. A potential IPO is one of the options being considered. The future board will be housed in a new Dutch holding company, which will maintain its base in Germany under Dutch law.
The quantitative figure of shares Bain Capital and Cinven plan to sell remains undisclosed. Their acquisition of Stada, which was operating with a workforce of around 11,500 individuals at the time, took place in 2017. If reports are to be believed, a springtime comeback to the stock market seems plausible according to sources within Stada.
Rumors of Stada's IPO plans have been swirling, with The Handelsblatt suggesting the company aims to raise between €1 billion and €2 billion. The ultimate ambition is to secure a spot in the MDax index. Despite negotiation setbacks with potential buyers like GTCR, CVC, and KKR, an IPO has now become the primary focus.
Under the current leadership and Goldschmidt's guidance, Stada has experienced substantial growth. This expansion was fueled by a series of acquisitions, coupled with the expansion of its over-the-counter brands and the emergence of a third pillar focused on specialty pharmaceuticals.
The company's financial performance has been impressive, with a 14% increase in revenue to €3.7 billion and a 19% surge in EBITDA to €802 million in 2023. These figures exclude the impact of Russia, which previously accounted for over 15% of revenue but was spun off due to its adverse impact on sale plans. Despite the ongoing conflict in Ukraine, Stada has chosen to maintain its Russian operations, ensuring medical supplies for the local population.
Sources:1. Reuters – Stada2. Bloomberg – Stada3. CNN – Stada4. DPA – Stada
Stada, with its operations based in Germany, is planning to list in Frankfurt, aiming for a valuation near €10 billion, as reported in Hessen. The potential IPO comes after Bain Capital and Cinven acquired Stada in 2017 for €5.3 billion.
If successful, the IPO could see Bain Capital and Cinven sell a portion of their shares in Stada, a company that employed over 11,500 individuals at the time of the acquisition. According to rumors, Stada is aiming to raise between €1 billion and €2 billion through the IPO, with the ultimate ambition of securing a spot in the MDax index.
