PAI to buy drugmaker Ethypharm

LONDON: European private equity fund PAI Partners is to buy French drugmaker Ethypharm for about 750 million euros ($855 million) from fellow private equity firm Astorg, two sources with knowledge of the matter said on Friday.

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

The sale, led by Rothschild, values the business at more than 12 times its 2015 earnings before interest, taxes, depreciation and amortization (EBITDA) of 60 million euros, the sources said. PAI Partners and Astorg were not immediately available for comment.

Based in Saint-Cloud, near Paris, Ethypharm does business in 30 countries and employs about 830 people. Last year it expanded in Britain with the acquisition of off-patent pharmaceuticals provider DB Ashbourne.

Ethypharm specializes in pain and addiction treatment, and also provides generic drugs to treat stomach and intestinal problems, as well as cardiovascular diseases.