BC Partners to increase debt at German pharma firm Aenova - sources
FRANKFURT, July 10
FRANKFURT, July 10 (Reuters) - BC Partners is talking to banks about loading more debt onto German pharma company Aenova and taking out a dividend of up to 120 million euros ($164 million), two people familiar with the transaction said.
With the deal, BC Partners is planning to reduce the equity proportion of the company's enterprise value (equity plus debt) from 45 percent to between 30 and 35 percent, one of the sources said, adding Aenova was currently valued at about 800 million euros in equity and debt.
"The idea is to simplify the financing of Aenova and make further add-on acquisitions possible," the source said.
Since the acquisition of Aenova in 2012 from buyout group Bridgepoint, BC Partners has merged the group with German peer Haupt Pharma and then pharma service group Temmler, each time injecting capital.
BC Partners is talking to banks about additional first- and second-lien loans and plans to increase Aenova's total leverage to more than 5 times its earnings before interest, tax, depreciation and amortisation (EBITDA) from currently just below 5, the source said.
The vitamins and generic prescription drugs maker in 2013 booked an EBITDA of 90 million euros on sales of 700 million, and is targeting an EBITDA of 110 million this year.
Aenova was formed by Bridgepoint through the merger of Swiss Caps, a maker of soft capsule vitamins, supplements and pharma products, with Dragenopharm, a German contract manufacturer for the prescription drugs market. It employs about 2,500 staff.
BC Partners declined to comment. (Reporting by Arno Schuetze and Alexander Hübner; Editing by Mark Potter)
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