Private Equity Firms Make Major Moves in European Generics Market

Chicago-based investment firm GTCR has agreed to acquire Zentiva, a Prague-based generics manufacturer, from Advent International in a deal valued at €4.1 billion ($4.8 billion). The transaction, expected to close in early 2026, marks another significant private equity investment in Europe's generic medicines sector.

Zentiva's Journey from Sanofi to Private Equity

Zentiva, formerly Sanofi's European generics business, was sold to Advent International in 2018 for €1.9 billion. Under Advent's ownership, the company has expanded its drug portfolio and manufacturing capabilities through organic growth and strategic acquisitions.

Steffen Saltofte, Zentiva's CEO, praised Advent's role in the company's transformation, stating, "Their commitment to investing in our capabilities, pipeline, and manufacturing base has been instrumental in our growth and in ensuring we can better serve millions of patients across Europe."

GTCR's Strategic Acquisition

GTCR's purchase of Zentiva follows a competitive bidding process, with reports earlier suggesting that Indian manufacturer Aurobindo was a frontrunner. The acquisition aligns with recent trends in the European generics market, as private equity firms seek to capitalize on the sector's growth potential.

Zentiva, which traces its roots back to a small pharmacy in Prague, now employs over 5,000 people across more than 30 countries. The company produces both generic over-the-counter and prescription drugs, and has been expanding its consumer health portfolio in select European markets.

Broader Trends in European Generics

The Zentiva deal closely follows another major transaction in the European generics space. Earlier this month, CapVest Partners announced its acquisition of a majority stake in German generics giant Stada, valuing the company at approximately €10 billion ($11.6 billion).

These back-to-back deals highlight the increasing interest of private equity firms in the European generics market, as they seek to leverage the sector's growth potential and consolidation opportunities.