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Stada shareholders
reject takeover bid
Contents
30 June 2017
Issue Number 485
COMPANY NEWS
Private-equity firm
grabs Oystershell
3
Ceuta globalising
‘brand fostering’
4
36.6 plots growth in
online pharmacy
5
LetterOne snaps up
Holland & Barrett
6
Mead Johnson buy
boosts RB offering
7
GENERAL NEWS
Canada simplifies
labelling language
10
Allergies lift German market
11
Pharmacy training
needs highlighted
12
Herbal approvals
hold steady
13
MARKETING NEWS
Prestige helps US
to #KeepMoving
16
Nutra Pharma eases
pain of high heels
17
TheOTCLab offers
IBS maintenance
18
REGULARS
Events – Our regular listing
19
People – Galenica appoints
new head of Retail
23
Connect with us on:
B
ain Capital and Cinven’s proposed takeover of Stada Arzneimittel has failed
after the private-equity firms were unable
to gain enough support for the deal from
the German company’s shareholders. Generics and OTC specialist Stada has vowed
to “press ahead” with its growth strategy.
Supported by Stada, the offer was first announced in April this year (OTC bulletin, 28
April 2017, page 1).
Nidda Healthcare – the acquiring company of
Bain and Cinven – secured 65.5% of Stada’s
outstanding shares by the 22 June deadline,
just short of the 67.5% minimum acceptance
threshold. The threshold had been “narrowly
missed”, Nidda said, “despite a highly attractive offer price of C66.00 per share, the recommendations by Stada’s management and supervisory board and a concerted shareholder outreach by Bain and Cinven”.
Nidda’s offer valued Stada at around C5.32
billion, or 12.3-times earnings before interest,
tax, depreciation and amortisation (EBITDA).
Commenting on the outcome, Matthias Wiedenfels, chairman of Stada’s executive board,
said the firm respected the “close vote of our
shareholders and understand it as a mandate to
press head with our successful growth strategy”.
“However, we also regard this decision as a
mark of confidence in Stada’s abilities,” he insisted, “which our employees have impressively
demonstrated, in particular over the past months.”
In order to “leverage the company’s great
potential”, Stada would, Wiedenfels promised,
work to implement the “far-reaching measures”
of its ‘Stada Plus’ improvement programme
Twitter
LinkedIn
introduced last year. “This will enable us to
generate sustainable growth, guarantee Stada
a successful future, and so live up to the trust
our shareholders have put in us.”
Ferdinand Oetker, chairman of Stada’s supervisory board, expressed his gratitude to the company’s shareholders “for the confidence they
have placed in Stada”.
“I am firmly convinced that, as an independent supplier of generics and branded products
with a market-acclaimed growth strategy, Stada
will be able to lastingly enhance its market
value,” Oetker insisted.
Despite the bid’s failure, Stada said its
growth targets for 2017 remained in place. The
firm expects that sales will reach between C2.28
billion and C2.35 billion. EBITDA is expected
to be between C430 million and C450 million.
Stada said it would hit these targets – and its
recently-adjusted medium-term targets for 2019
(OTC bulletin, 24 March 2017, page 1) – by
implementing “various initiatives” under the
Stada Plus programme. “The aim of these initiatives is to strengthen the segments of Generics
and Branded Products, to tackle the potential of
new and existing markets, to reduce the complexity of the firm’s portfolio and its organisational
structure, and to improve its cost base,” it added.
The bidding war for Stada began in February
when the firm started “open minded talks” with
two potential suitors, Cinven and Advent (OTC
bulletin, 17 February 2017, page 1).
After conducting a “structured bidding process” (OTC bulletin, 3 March 2017, page 1),
Stada voiced its support in April for Bain and
Cinven’s takeover offer.
OTC
OTC-bulletin.com