| LONDON, April 6
LONDON, April 6 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
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)