CapVest Partners has agreed to purchase a majority stake in German generics manufacturer Stada Arzneimittel, marking one of the largest deals in the healthcare sector this year.
Takeover company CapVest, which has around €12bn ($14bn) of assets under management, will purchase Stada from private equity owners, Bain Capital and Cinven, both of whom will keep a minority holding after the transaction, as per a 1 September statement.
Financial terms of the deal were not disclosed, though Reuters reported that the stake being sold is 70%, with a valuation of Stada asserted at about €10bn ($11.7bn). The transaction is expected to be completed in early 2026.
Bain Capital and Cinven bought Stada for €5.3bn in 2017 in a deal that delisted the pharma company from the Frankfurt stock exchange, along with placing one of Europe’s largest generics manufacturers into private control.
Buoyed by strong growth across its consumer healthcare division, generic drugs segment, and speciality medication portfolio, Bain and Cinven mulled a sale for the company in 2023.
Amid a tepid mergers and acquisitions (M&A) landscape, the strategy switched to an initial public offering (IPO). However, this too was pivoted away from amid market volatility, finally leading to a discussion with takeover firm CapVest.
Approximately 40% of Stada’s revenues are generated from its consumer health products, which include cough and cold products, dermatology drugs, and painkillers. Generics contribute another 40% to Strada’s revenue streams, which come from more than 100 countries.
According to CapVest, since 2017, Stada generated revenues in excess of €4bn, delivering a compound annual net sales growth rate of 9%, and more than doubling earnings before interest, taxes, depreciation, and amortisation (EBITDA). The firm currently employs approximately 11,600 people worldwide.
Matthew Fargie of CapVest said: “We have admired Stada for several years… Stada is a unique strategic platform through which we will leverage our significant healthcare and consumer expertise to accelerate the development of the company in Germany and internationally. We intend to deploy significant new capital towards this objective.”
A recent report by GlobalData projects that the share of global drug sales under patent protection will decline by 2030, representing a boost to the generics and biosimilars markets. Only 4% of global drugs will have patent protection, compared to 12% and 6% in 2022 and 2024, respectively.
Trade channels for generics have been an ongoing discussion point in the pharma industry this year amid US President Trump’s tariffs. The US administration has been seeking efforts to decrease reliance on imported drugs, though Trump stated that certain generics will be exempt from levies, such as the 15% blanket rate agreed with Europe.
