19 Feb, 2021

Cooper's sale approaches conclusion, with HSBC staple financing in play

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By Francesca Ficai


The sale of Cooper, the French drug manufacturer and distributor owned by Charterhouse, is approaching the final phase, with OTTP and PAI bidding together, and CVC bidding alone, sources said.

HSBC has offered a staple financing of 7.25X EBITDA, for a first-lien term loan B with a second lien facility, sources said. However, bidders will also have their own financing as an option.

The company is marketed at roughly €150 million EBITDA, and could fetch an enterprise value of up to €2 billion, sources said. Rothschild is advising the process.

In 2016, Charterhouse acquired Cooper and merged with Dutch OTC (over-the-counter) business Vemedia. In May 2018, Cooper-Vemedia allocated its €776.3 million term loan B at E+325 with a 0% floor, offered at par. Proceeds from that loan were earmarked to refinance the Charterhouse-backed French pharma group's loans, and helped fund the acquisition of 12 pharmaceutical brands from Sanofi announced in April 2018, for €158 million. The financing also included a €60 million revolver priced at E+300 with a 0% floor, offered at 99.75. Morgan Stanley and Nomura were joint global coordinators on the loan, and worked with bookrunners NatWest Markets and Deutsche Bank.

Cooper produces pharmaceutical raw materials; OTC products such as antiseptics; medical devices including thermometers and pill boxes; and orthopedic products such as belts and braces.

Cooper is an OTC drug manufacturer and distributor, with a network 22,000 pharmacies and a portfolio comprising 20 product "families." The firm is headquartered in France, and has approximately 850 full-time employees.