As bankers predict a rise in private equity exits this year, one of 2024’s M&A moves could come from the drug manufacturing realm.
Investment giant Bain Capital is weighing a potential sale of its Dutch antibiotics and active pharmaceutical ingredients (API) specialist Centrient Pharmaceuticals, which could be valued as high as €1 billion ($1.09 billion), Bloomberg reported Wednesday, citing people close to the talks.
To work through the potential sell-off, Bain has enlisted Citigroup and Jefferies Financial Group, the news outlet reports. The talks are ongoing and don’t guarantee that a sale will manifest, Bloomberg’s sources said.
Previously known as DSM Sinochem Pharmaceuticals, Centrient was bought out by Bain and adopted its new name in late 2018.
The company traces its roots back all the way to 1869, according to Centrient’s website. These days, Centrient boasts around 1,800 employees with operations on four continents. The company specifically focuses on enzymatic antibiotics, next generation statins and anti-fungals. Centrient also produces and sells intermediates and APIs, plus tablets, capsules and other finished dosage forms.
Regarding the CDMO’s manufacturing footprint, Centrient says it operates six production facilities across The Netherlands, Spain, India, Mexico and China.
Like most drug manufacturers, Centrient hasn’t always stayed on the U.S. FDA’s good side. In late 2022, the company was slapped with a warning letter at its manufacturing facility in the Indian state of Punjab for lapses in its drug ingredients production processes.