MCH Nears Deal for Curia Spain in Final Sale Stage

Spanish private equity firm MCH has emerged as a frontrunner in the final stages of the sale process for Curia Spain, the Iberian arm of the US-based pharmaceutical contract development and manufacturing organization (CDMO). The deal, reportedly valued in the vicinity of $350 million euros (approximately $375 million USD), is nearing its conclusion with binding offers expected imminently.

MCH is competing against a strong field of potential buyers, including Apheon, Keensight, and ProA Capital. Notably, Advent has reportedly exited the competitive process. The strategic positioning of MCH is further bolstered by its collaboration with Gerardo Gutiérrez, the original founder of the business when it operated as Grupo Gadea. This partnership leverages Gutiérrez's deep understanding of the company's origins and his established relationship as a frequent investor with MCH.

Curia Spain, with its roots in the Spanish pharmaceutical firm Grupo Gadea, specializes in the development and manufacturing of steroid-based Active Pharmaceutical Ingredients (APIs). Its primary facility in Boecillo, Valladolid, is a unique hub for this specific niche within Spain. The company also maintains significant operations in León and San Cristóbal de Entreviñas (Zamora), focusing on biotechnology R&D and fermentation processes crucial for intermediate product manufacturing. This integrated operational structure employs approximately 400 professionals across the country.

The current ownership of Curia, Carlyle and GTCR, acquired the company (then known as AMRI) in a transaction that valued the broader entity at nearly $1 billion USD in 2017. The sale of the Spanish division, codenamed 'Project Compass', was initiated earlier this year with Rothschild engaged to manage the divestiture. The process has advanced rapidly, with the shortlisted bidders conducting thorough due diligence in recent weeks.

Market observers suggest that the final transaction price may fall below the initial asking price, potentially landing between $350 million and $400 million USD. Financial disclosures indicate that Curia Spain generates around $140 million USD in revenue, with an EBITDA reported at $50 million USD. However, some market participants suggest the actual EBITDA might be closer to $35 million USD, a figure that would influence the multiples applied in the valuation. The CDMO sector commonly sees EBITDA multiples in the double digits, aligning with the reported valuation range.

The sale of Curia Spain represents a significant opportunity within the European CDMO market, a sector experiencing robust growth driven by increasing demand for outsourced pharmaceutical manufacturing and the complexity of drug development. The specialized focus on steroid APIs positions the Spanish entity as a valuable asset for any strategic acquirer looking to enhance their capabilities in this area. The outcome of this competitive bidding process will offer further insight into current valuation trends for specialized pharmaceutical manufacturing assets.