In a significant corporate maneuver, prominent private equity firms including Blackstone, Warburg Pincus, and Nordic Capital are competing to acquire a stake in Sebia, a leading French diagnostics company. The prospective deal could value Sebia at around €5 billion, as reported by Bloomberg, citing sources close to the situation. This move comes on the heels of Caisse de Dépôts et Placement du Québec's decision to sell its 40% interest in Sebia, a stake originally acquired from Astorg in 2017.
The competitive landscape for this acquisition is further complicated by involvement from other notable firms such as Hellman & Friedman and TPG, both of which are also considering making bids. The nature of these offers could vary significantly, with scenarios ranging from minority stake acquisitions to complete buyouts. Non-binding offers were officially submitted on September 22.
Financially, potential bidders are exploring financing packages of around €2 billion to support their bids, with banks preparing term loans of approximately €1.5 billion. Given Sebia's estimated EBITDA of €250–300 million, leverage in the case of a majority deal could reach an aggressive eight to nine times EBITDA. If a minority stake acquisition is pursued, the existing debt structure is expected to remain intact, although there may be options for additional financing.
Strategically, the acquisition of Sebia aligns with the interests of the bidding firms as it would enhance their portfolios in the diagnostics sector, which is critical for healthcare infrastructure globally. Sebia provides essential diagnostic equipment and reagents to over 120 countries, making it an attractive target for investment.
As the bidding process unfolds, the timeline for a potential closing remains fluid, contingent upon negotiations and the final decision of the participating firms. Regulatory considerations will also play a crucial role, as any substantial acquisition will need to navigate potential antitrust reviews to secure necessary approvals.
The outcome of this bidding war not only holds significant implications for the shareholders of Sebia and the involved private equity firms but may also influence the broader market landscape within the healthcare and diagnostics sectors. Employees of Sebia will be watching closely as the future ownership could lead to changes in company strategy and operations, depending on the direction chosen by the winning bidder.