April 6, 2017 / 3:56 PM / 5 months ago

LPC-Bankers prepare €500m of debt as Sanofi lines up Cepia sale

LONDON, April 6 (Reuters) - Banks are preparing debt packages of up to €500m to back a potential sale of French drug maker Sanofi’s European contract manufacturer business Cepia, banking sources said on Thursday.

Cepia is a division of Sanofi, dealing with what Sanofi calls “third party activities” such as supply and production and is hoped to fetch up to €1bn, banking sources said.

Information packages have gone out to potential bidders as the sale process kicks off and the business is expected to generate interest from a number of private equity and strategic bidders.

Sanofi was not immediately available to comment.

French buyout firms like Ardian, Eurazeo and Wendel are expected to take a look at the asset as are private equity firms already active in the pharma space, such as Apax, BC Partners and Advent, the sources added.

Bankers are putting together leveraged loan financings totalling around 6 times Cepia’s approximate €60m-€70m Ebitda.

Last month, Sanofi hired advisers for the sale of its European generic drug business, ahead of an auction process which is expected to start after the European summer. (Editing by Christopher Mangham)

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