Research Update: AI Sirona (Luxembourg) Acquisition Sarl (Zentiva) Assigned 'B' Rating; Outlook Stable

In September 2018, after receiving regulatory approval, Advent International acquired Zentiva, Sanofi's European generics business via parent company AI Sirona (Luxembourg) Acquisition Sarl, for an enterprise value of €1.92 billion. Zentiva benefits from well-entrenched market positions in major European markets, supported by a very diverse product portfolio, highly competitive costs of manufacturing, and a track record of winning tenders. We are assigning our 'B' issuer credit rating to AI Sirona. The stable outlook on Zentiva reflects our view that, in the next 12-18 months, the company will continue to benefit from its well-balanced presence in its European markets, supporting volume, revenue, and EBITDA growth. We expect Zentiva will maintain our adjusted debt to EBITDA between 6.0x and 7.0x on average

...+ In September 2018, after receiving regulatory approval, Advent International acquired Zentiva, Sanofi's European generics business via parent company AI Sirona (Luxembourg) Acquisition Sarl, for an enterprise value of 1.92 billion. + Zentiva benefits from well-entrenched market positions in major European markets, supported by a very diverse product portfolio, highly competitive costs of manufacturing, and a track record of winning tenders. + We are assigning our 'B' issuer credit rating to AI Sirona. + The stable outlook on Zentiva reflects our view that, in the next 12-18 months, the company will continue to benefit from its well-balanced presence in its European markets, supporting volume, revenue, and EBITDA growth. We expect Zentiva will maintain our adjusted debt to EBITDA between 6.0x and 7.0x on average over the next three years....

Research Update