Triton’s plans to sell Pharmanovia are stalling over valuation, people familiar with knowledge of the matter said, in another sign that private equity firms are struggling to get deals over the line.
(Bloomberg) — Triton’s plans to sell Pharmanovia are stalling over valuation, people familiar with knowledge of the matter said, in another sign that private equity firms are struggling to get deals over the line.
UK-based Triton has been running an auction process for the British specialty pharma business and seeking more than €2 billion ($2.2 billion) in a deal, according to the people.
Triton has been in discussions about selling Pharmanovia to private equity peer Permira, which already owns a European specialty pharma company called Neuraxpharm, but talks have faltered on price, they said.
Deliberations are ongoing and Triton continues to pursue a sale of part or all of its stake in Pharmanovia, the people said, asking not to be identified discussing confidential information. Other suitors could also emerge, they said. Representatives for Triton and Permira declined to comment.
Read More: Triton Said to Start Sale of $1.5 Billion Specialty Pharma Firm
Private equity firms have found it harder to close deals this year amid tight financing markets and disagreements over pricing between buyers and sellers. This has even been the case in the health-care sector, where dealmaking has otherwise defied the broader slump in global mergers and acquisitions.
Dentsply Sirona Inc.’s potential $1 billion sale of medical product unit Wellspect HealthCare is also stalling after private equity bids didn’t meet expectations, Bloomberg reported in June, and Cardinal Health Inc. decided to hold onto a $2 billion nuclear medicine business that had drawn bids from CapVest Ltd. and HIG Capital.
Meanwhile, BC Partners, which was seeking to raise about £3 billion ($3.8 billion) from a full sale of UK veterinary chain VetPartners, is now exploring options including a minority stake sale, people with knowledge of the matter said previously.
Triton invested in Pharmanovia in 2019 and the company has since grown through bolt-on acquisitions. Pharmanovia has products across its core therapeutic areas of oncology, endocrinology, neurology and cardiovascular. Founded in 2013, it had sales last year of €409 million, according to Triton’s website.
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