VEM plans sale of Ratiopharm

Published: 18-Sep-2009

Ratiopharm, the German generic drugs maker, has been put up for sale by investment vehicle VEM Vermoegensverwaltung, which aims to sell it as a single entity rather than breaking it up.


Ratiopharm, the German generic drugs maker, has been put up for sale by investment vehicle VEM Vermoegensverwaltung, which aims to sell it as a single entity rather than breaking it up.

VEM, which is owned by the financially beleaguered Merckle family, and controls the Ulm, Germany-based Ratiopharm, said there are a "high number" of interested parties.

Offer documents will be sent out at the beginning of October, followed by statements of interest from bidders, VEM said.

Ludwig Merckle is selling pharmaceutical, machinery and cement assets after his father Adolf Merckle, who committed suicide in January, amassed debts after stock market bets went badly wrong.

"The high number of interested parties at such an early stage underscores the Ratiopharm group's attractiveness," said Hans-Joachim Ziems, managing director of VEM. Ziems and trustee Martin Stockhausen are supervising the sale process, which will be completed in the first quarter of 2010 at the earliest owing to the "complexity" of the transaction and the number of interested parties.

VEM says it considers it a "top priority" that the group is sold as a single entity to one buyer. However, it also said it was prepared to sell parts of the company to different interested parties.

The Ratiopharm group had a turnover of Euro 1.7bn last year. The sale may fetch up to €3bn.

Sanofi-Aventis, Pfizer, Israeli generic group Teva and US company Mylan, as well as several private equity firms are believed to be possible bidders.

The Merckle family owns Ratiopharm as well as pharmaceutical wholesaler Phoenix.

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