German chemotherapy firm Zytoservice attracts bids from buyout funds - sources

YungShin Global Holding

04/08/2016 16:33

FRANKFURT, Aug 4 (Reuters) - German chemotherapy compound 
maker Zytoservice has attracted offers in a second bidding round 
from several buyout groups, people familiar with the situation 
said.  
    Private equity firms including IK - the former owner of 
Zytoservice peer GHD - and PAI have submitted bids valuing 
Hamburg-based Zytoservice at roughly 250 million euros ($278 
million), they added.  
    Compared with initial offers, valuations have come down in 
the second round of bidding as recent changes to the regulatory 
regime weighed on prices, one of the people said.  
    To reduce the cost of cancer treatment, leading German 
health insurers earlier this year put in place tender processes 
to procure chemotherapeutic agents, curbing drug suppliers' 
margins.  
    Zytoservice majority owner Capiton earlier this year 
mandated healthcare advisory firm Ferber to find a buyer for 
Zytoservice, which was founded in 2002 and employs 200 staff.  
    The buyout groups declined to comment or were not 
immediately available for comment. 
($1 = 0.8977 euros) 
 
 (Reporting by Arno Schuetze; editing by Susan Thomas) 
 ((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters 
Messaging: arno.schuetze.reuters.com@reuters.net)) 
 
Keywords: ZYTOSERVICE M&A/PRIVATEEQUITY