FRANKFURT (Reuters) - German generic drug maker Stada (STAGn.DE) will be in a position to stem takeovers of up to 1 billion euros ($1.13 billion) thanks to its own acquisition by private equity, Chief Executive Matthias Wiedenfels told German newspaper Welt am Sonntag.
Stada’s management has backed a 5.3 billion euros offer from bidders Bain and Cinven, a deal which opens up new growth options for Stada, Wiedenfels told the paper.
“We have long been on the lookout for takeover targets, even those which are actually too large for us. We are doing this in the area of generic drugs and branded drugs,” Wiedenfels told the paper.
“Large takeovers are not possible using our current means,” he explained, adding that the company’s war chest was only around 350 million euros. After the takeover, Stada will be in a position to stem takeovers of up to 1 billion euros, Wiedenfels said.
Bain and Cinven have agreed to avoid forced redundancies for four years, assurances which Weidenfels said puts the company on a path to growth.
Shareholders have until June 8 to tender their shares and a takeover will likely be completed by August 30, Weidenfels said.
(This version of the story corrects spelling of Matthias Wiedenfels)
Reporting by Edward Taylor; Editing by Andrew Bolton