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Kohlberg and Warburg Pincus are among several sponsors that have expressed interest in acquiring Cambrex, as the contract pharmaceutical manufacturer’s current owner Permira looks to sell the company, according to 9fin sources.

With updated bids due in the coming days, interested parties have been taking financing pitches. Some of these packages involve bank-led debt that would lever the company more than 5x through first lien secured debt, with syndicated term loans priced at around 300bps to 350bps over SOFR, according to sources.

One source noted that some banks are even offering packages including subordinated debt that would take total leverage to around 7x.

Cambrex currently has private loans (details in our private credit database here) provided by lenders including Apollo, KKR and Blue Owl, including a first lien term loan paying SOFR+475bps according to filings in our BDC screener. Those loans contain a portability feature that could enable the debt to stay in place under a new owner, sources said.

However, the competitive pricing on offer in the syndicated debt markets could make replacing that portable private debt an attractive option for potential buyers, sources added.

“If you can get tighter pricing in the BSL market, it doesn't matter if the existing debt is portable or not,” said another source following the sale process.

Depending on what add-backs they are using, prospective bidders estimate Cambrex’s adjusted EBITDA at between $220m and $250m, according to sources. Based on current interest, the company could be valued at a multiple in the mid teens, implying a total valuation potentially up to $4bn, sources added.

Moelis and Morgan Stanley are helping to facilitate the sale process for Cambrex, according to sources.

Cambrex specializes in manufacturing specialty ingredients for pharmaceutical products. One of its direct competitors is PCI Pharma, which earlier this year received an investment from a group of private equity firms including Bain Capital and, notably, Kohlberg. That deal valued PCI at $10bn including debt, according to a report in the Wall Street Journal.

Apollo, KKR, Pemira and Warburg declined to comment. Moelis, Morgan Stanley, Kohlberg, and Blue Owl did not respond to messages seeking comment.