Fri 09/09/2022 07:06 AM
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Relevant Documents:
FY’21 Financial Report (in Italian)
Valeas Acquisition Statement (in Italian)

Direct lenders are monitoring the sale of Italian pharmaceutical company Neopharmed and some private equity firms have submitted bids for the business, sources told Reorg. The Ardian-owned company is being marketed off EBITDA of €115 million LTM to March 2022, which takes into account the acquisition of peer Valeas in July, sources added.

The acquisition of Milan-based company Valeas was approved on July 11, according to a statement. The distributor of pharmaceutical drugs and supplements was formerly controlled by Riverness Holding. Valeas' reported turnover in Italy was less than €100 million in 2021.

Neopharmed’s pro forma EBITDA including Valeas’ acquisition was €112 million for financial year 2021, sources said. Goldman Sachs is advising on the sale, which started in March with the aim of finding a buyer before the end of the summer but it did not initially get traction with sponsors. Some sources noted that an industrial buyer could also be a good fit to add Neopharmed to a pan-European portfolio.

The company is targeting a valuation of €1 billion and ICG is among the bidders, according to an article in ilsole24ore.

The debt process has been narrowed to a few potential lenders. The company’s incumbent lenders include Tikehau, sources said. Eurazeo is also a lender, according to its portfolio.

Ardian acquired the company in 2018 from Mediolanum Farmaceutici, a pharmaceutical company founded by the Del Bono family, which retained a minority stake.

In 2021, Neopharmed’s reported revenue decreased 5.8% year over year to €184.5 million. The group’s LTM reported EBITDA was €68.4 million.

As of Dec. 31, 2021, total debt was €235 million while net debt amounted to €157.2 million. Net leverage was at 2.3x.

Neopharmed’s capital structure as of Dec.31, 2021 is below:

















































































































Neopharmed Gentili SpA


12/31/2021

EBITDA Multiple

(EUR in Millions)

Amount

Maturity

Rate

Book


€235M Syndicated Term Loan B

235.0

2025


€25M Revolving Facility

-

2025


Total Secured Debt

235.0

3.4x

Total Debt

235.0

3.4x

Less: Cash and Equivalents

(77.8)

Net Debt

157.2

2.3x

Operating Metrics

LTM Reported EBITDA

68.4

LTM Reorg EBITDA

112.0


Liquidity

RCF Commitments

25.0

Plus: Cash and Equivalents

77.8

Total Liquidity

102.8

Credit Metrics

Gross Leverage

3.4x

Net Leverage

2.3x


Notes:
Reported EBITDA is as calculated by Reorg using FY'21 accounts. Reorg EBITDA is Group EBITDA including Valeas’ acquisition in July 2022.



Neopharmed focuses on the research, development, production and distribution of medicines in the vascular, cardio-metabolic, respiratory, antibiotics and over-the-counter drug markets in Italy. It was founded in Milan in 2011, after the combination of Gentili Srl and Neopharmed Srl. In 2017, the company acquired the Italian branch of Belgian company Therabel Gienne Pharma.

Ardian and Goldman Sachs did not reply to Reorg’s request for comment.

–Lucía Camblor
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