* Forecasts net income of 195-205 mln euros in 2017
* Three buyout firms vie for generic drugmaker
(Adds background on bidding process, multiples)
By Ludwig Burger and Maria Sheahan
FRANKFURT, March 1 German generic drugmaker
Stada, which has attracted three private equity
suitors, said it was targeting an increase in adjusted earnings
of up to 11 percent this year, in line with consensus forecasts.
Stada is opening its books to Advent, Cinven and Bain
Capital after an activist shareholder pushed through personnel
changes and a strategic overhaul last year.
In an unscheduled statement on Wednesday, Stada said net
income, adjusted for one-off items, was likely to rise to
195-205 million euros ($205-$216 million), from 184 million
That was in line with the average analyst estimate for 200
million euros, according to a figure on Stada's website. Its
shares edged 0.1 percent higher to 57.21 euros at 1405 GMT.
Advent has offered 58 euros per share for Stada, valuing the
equity at up to 3.6 billion euros, or more than 4.7 billion when
including its net debt.
That amounts to 10.8 times the adjusted earnings before
interest, taxes, depreciation and amortisation (EBITDA) expected
for this year.
Larger generics companies Teva and Mylan
are trading at multiples of about 8.7, while for Richter Gedeon
, an eastern European rival, the multiple is almost 11.
Takeover prices typically come a considerable premium to trading
Stada, which also makes branded non-prescription treatments
and diagnostic kits, said fourth-quarter adjusted net income
rose to 44 million euros ($46 million) from 39 million a year
earlier and slightly above the average estimate of 42 million
But reported net earnings slipped to a loss of 7.4 million
euros in the three months through December, hurt by
restructuring charges, compared with a year-earlier profit of
20.5 million, it said.
($1 = 0.9500 euros)
(Editing by Georgina Prodhan/Keith Weir)