According to sources familiar with the matter, Advanz Pharma has drawn interest from private equity funds as its creditors are working to find a new owner following a debt restructuring deal last year, as reported in This is Money.
US buyout fund Carlyle is among a group of bidders that have handed in indicative offers for the drugmaker, the sources said, adding that Nordic Capital and TDR have also joined the auction which is led by US investment bank Jefferies.
The process is challenged by differing views on valuation as the drugmaker’s creditors are aiming for about $2 billion while private equity bidders are wary after previous attempts to sell the business have fallen through, the sources said.
The added that Advanz's creditors are hoping the business could fetch at least eight to nine times its estimated 2020 core earnings of $240 million.
In 2018, the firm, which was trading on Nasdaq as Concordia, was delisted as part of a debt restructuring deal and then rebranded as Advanz Pharma. Its debt was cut by $2.4 billion as part of the restructuring which saw Blackstone's credit investment arm GSO taking control along with Bybrook and Solus.
Earlier this month, Advanz Pharma reported third-quarter 2020 revenue of $129 million, with a net loss of $42 million. Its third-quarter 2020 adjusted core earnings declined to $53.5 million from $55.9 million in the same period in 2019 and $65.1 million in the second quarter of 2020.
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