PAI Partners to buy French specialty pharmaceutical company Ethypharm for €750 mn

European private equity fund PAI Partners yesterday struck a deal to buy independent French specialty pharmaceutical company Ethypharm for about €750 million ($855 million) from European buyout firm Astorg Partners, Reuters today reported, citing two sources with knowledge of the matter.

PAI has trumped rival bids from Bain Capital and European pharmaceutical firm Mundipharma, the report said.

The sale values the business at more than 12 times its 2015 earnings before interest, taxes, depreciation and amortization (EBITDA) of €60 million, the report added.

In October last year, Astorg, which had acquired Ethypharm in 2007 for about €300 million, hired financial advisory firm Rothschild to arrange for the sale of Ethypharm.

Founded in 1977, Ethypharm specialises in the treatment of pain and addictions, gastroenterology and cardiovascular diseases.

Last year it acquired off-patent pharmaceuticals provider DB Ashbourne in order to expand its presence in the UK.

The company generated revenues €186 million last year, with 44 per cent of it coming from France and the rest spread across the rest of Europe, China, North America and the rest of the world.

In March, Bloomberg reported that Chinese drugmaker and health-care provider Luye Pharma Group Ltd was among the bidders for Ethypharm.