Sterling Pharma Solutions, a pharmaceutical contract development and manufacturing organization (CDMO), received a significant minority investment from Partners Group and additional funds from existing majority owner GHO Capital. According to the press release, the new investment will support Sterling’s growth trajectory by expanding production capacity, adding complementary capabilities, and supporting the pursuit of further strategic acquisitions.
Pharmaceutical Services EBITDA Multiples
According to an Axios report, the investment was based on a valuation of just under £500 million ($618.25 million USD at the current conversion rate of 1:1.2365). According to Sterling's financial statements, the company generated revenue of £118.6 million ($146.6 million) and EBITDA of £35.4 million ($43.75 million) in FY 2022, implying multiples of 4.2x revenue and 14.1x EBITDA. The implied EBITDA multiple is in line with other recent CDMO transactions, including Carlyle's 2021 acquisition of fellow British CDMO Vectura Group.
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The Scope Research Healthcare M&A Valuation Database currently has financial details for 132 pharmaceutical services (CRO, CDMO, consulting, and transportation) deals going back to 2010, 109 of which include reported EBITDA multiples. The pharma services data can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.
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