| FRANKFURT, Sept 11
FRANKFURT, Sept 11 The first bids for German
medical skin patch maker LTS Lohmann are due in the second half
of October, three people familiar with the sale told Reuters on
Initial company documents, so called "teasers", have been
sent to a wide range of prospective bidders, including buyout
firms EQT and Advent International, they added.
A source familiar with German specialty chemicals maker
Evonik said the group had considered bidding for LTS
Lohmann but was no longer interested. Evonik declined to
Sources told Reuters in July that Morgan Stanley had been
hired to find a buyer for LTS Lohmann, which is part-owned by
The company makes about 200 million euros ($265 million) in
annual sales from nicotine and other medical patches to treat
conditions including Parkinson's and Restless Legs Syndrome.
It is expected to fetch more than 1 billion euros,
equivalent to more than 10 times earnings before interest, tax,
depreciation and amortisation (EBITDA), sources have said.
Transdermal patches of the type made by LTS have become
increasingly important in the drugs industry since they offer a
convenient and reliable way of delivering a variety of
One potential complication is that Novartis is not only a
co-owner of LTS, with a 43 percent stake, but is also its
German billionaire Dietmar Hopp has about 30 percent and
German holding company BWK owns the rest.
Novartis, Dietmar Hopp's investment company, Morgan Stanley
and Advent declined to comment.
Officials at BWK and EQT were not immediately available for
($1 = 0.7538 euros)
(Additional reporting by Ludwig Burger and Matthias Inverardi;
editing by Philipp Halstrick and David Evans)