March 14, 2018 / 6:21 PM / 9 days ago

Ardian launches sale of German pharma firm Riemser: sources

FRANKFURT (Reuters) - Buyout group Ardian has launched the sale of German healthcare firm Riemser Pharma, which may fetch a valuation of more than 400 million euros ($495 million), people close to the matter said.

Ardian is working with Rothschild and Jefferies on the sale and has approached healthcare groups such as Stada (STAGn.DE), Mylan (MYL.O) and Shanghai Pharma (601607.SS) as potential buyers, as well as private equity investors like Nordic Capital, Montagu, Charterhouse, IK and Fosun, they said.

First-round bids were due this week, they said.

Ardian and the banks declined to comment.

Riemser is expected to report 40 million euros in adjusted earnings before interest, tax, depreciation and amortization this year on sales of 120 million euros.

Ardian views Germany’s Dermapharm (DMPG.DE) as a benchmark rival, the people said. Dermapharm’s stock market listing earlier this year valued it at around 13 times its expected core earnings.

    But bidders are expected to consider a valuation at 10-12 times core earnings as more realistic, the people added.

    Riemser makes drugs to treat cancer, tuberculosis and infectious diseases. Since its acquisition by Ardian in 2012, Riemser has bought firms such as France’s Keocyt, the UK’s Intrapharm and a division of Germany’s Dolorgiet, and has also sold off some businesses.

    ($1 = 0.8080 euros)

    Reporting by Arno Schuetze. Editing by Jane Merriman

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