IPO plan evaporates as private equity firm buys Stada

Reports last week that German pharma group Stada was planning an initial public offering (IPO) were erroneous, as the company has just agreed to a change in private ownership.

It emerged this morning that private equity group CapVest has agreed to buy a majority stake in Stada from investment groups Bain Capital and Cinven in a deal that market watchers say values it at around €10 billion ($11.7 billion).

Bain and Cinven, which bought the company for €5.7 billion in 2017, will retain a minority share in the business. Since then, Stada has grown its annual sales by an average of 9% a year, reaching more than €4 billion, and doubled its operating earnings.

In the first half of this year, the drugmaker reported a 6% rise in first-half revenues to €2.1 billion, while operating earnings grew 5% to €481 million, which was described by chief executive Peter Goldschmidt as a "record level" for the company.

The future of Stada – which specialises in generic, over-the-counter (OTC), and biosimilar medicines for rare and chronic diseases and employs around 11,600 people worldwide – has been under consideration since 2023, when talk of a possible sale, an IPO, or some other transaction first emerged.

A Reuters report, citing people close to the matter, has suggested that CapVest is taking a stake of around 70%, having tried initially to take control with 50% plus one share.

"CapVest’s focus on working closely with management in transforming the size and scale of its portfolio companies through significant capital investment, a combination of organic and acquisition-led growth, operational excellence, and long-term value creation reflects the same principles that have underpinned Stada's success to date," said Goldschmidt in a statement.

The terms of the transaction have not been disclosed and are subject to the usual regulatory approvals and closing conditions. It is expected to close early next year, according to Stada.

"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," commented CapVest principal Matthew Fargie.

Stada started talking about a possible IPO earlier this year, before shelving the plan, ostensibly because of volatility in the pharma market caused by the threat of tariffs by the Trump administration in the US, before suggesting in August that it may try again in the autumn if financial conditions improved.