GTCR is said to near $4.8 billion deal to buy Advent’s Zentiva

Buyout firm GTCR is nearing a deal to buy generic drugmaker Zentiva in a deal that could be valued at about $4.8 billion, according to people familiar with the matter.

GTCR emerged as the likely buyer of Advent -owned Zentiva after outbidding rivals including private equity firms and drugmakers, the people said, asking not to be identified because the information is private. An announcement could come as soon as Thursday, the people said.

Representatives for Chicago-based GTCR, Advent and Zentiva didn’t immediately respond to requests for comment.

Bloomberg News reported in November that Advent was working with Goldman Sachs Group Inc. and boutique adviser PJT Partners Inc. to explore a possible sale of Zentiva. TPG Inc. and India’s Aurobindo Pharma Ltd. also expressed interest in the Prague-based company, Bloomberg reported in July.

Zentiva, which traces its roots to the 15th century, operates in more than 30 countries and has manufacturing sites in the Czech Republic, Romania and India, according to its website. It was nationalized in 1946 and then management acquired a majority share in 1998, establishing a new focus on branded generic medicine. Advent bought the business from Sanofi SA for €1.9 billion ($2.2 billion) in 2018.

Private equity firms have been pouring money into generic drugs as large drugmakers focus on developing treatments that require cutting-edge technologies. CapVest Partners this month agreed to buy control of Stada Arzneimittel AG, ending a long-running saga over the future of the German firm. The transaction valued Stada at about €10 billion including debt.

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