DRUGS maker and pharmacy services provider Sigma Pharmaceuticals, and a private equity consortium led by Carnegie Wylie, have made a formal bid for the consumer and pharmacy services divisions of Symbion Health for an enterprise value of $1.085 billion.
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Under the bid, Sigma intends to acquire Symbion’s consumer business, which includes vitamins and health supplements, and the consortium, referred to as the CWC Entity, would acquire Symbion’s pharmacy services business.
The CWC Entity is a newly incorporated company sponsored by investment firm and corporate adviser, Carnegie, Wylie & Company.
“The offer is currently being considered by the Symbion board, and there is no certainty that an agreement will be reached between the parties,” Sigma said yesterday.
Symbion’s consumer brands include Nature’s Own, Cenovis, Golden Glow, Bio-Organics, Natural Nutrition and Vitelle.
Symbion’s pharmacy services division wholesales pharmaceutical and healthcare products to about 3000 retail pharmacies, and hospitals.
Sigma chief executive Elmo de Alwis said acquiring Symbion’s consumer business would give Sigma a “meaningful presence” in that market, adding brands that Sigma could sell through its pharmacy banner groups.
“It also gives us scale in terms of manufacturing, in terms of sales and marketing,” Mr de Alwis said.
Mr de Alwis said the transaction would be debt-funded but would not disclose details.
Symbion said the Sigma joint offer was superior to another offer that has been made for Symbion’s consumer and pharmacy services divisions.
Symbion also has operations in pathology, diagnostic imaging and medical centres.
The whole Symbion group of five divisions is subject to a $2.9 billion cash-and-scrip takeover offer from Australia’s second-biggest private hospital operator, Healthscope.
Under the Healthscope offer, Healthscope would retain Symbion’s pathology, imaging and medical centres divisions.
Private equity firms Ironbridge Capital and Archer Capital would then acquire Symbion’s pharmacy services and consumer businesses at an enterprise value of $1.043 billion.
Symbion said the Sigma joint offer for Symbion’s consumer and pharmacy divisions was $42 million higher than the implied enterprise value of $1.043 billion offered by Ironbridge Capital and Archer Capital.
