EQT and KKR circle Swiss CDMO PolyPeptide in takeover approach as PE appetite for pharma outsourcing assets accelerates
EQT and KKR have both expressed takeover interest in PolyPeptide Group, the Zurich-listed contract development and manufacturing organisation (CDMO — a company that manufactures pharmaceutical ingredients and drug products on behalf of third-party clients) specialising in peptide active pharmaceutical ingredients. The approach signals renewed private equity appetite for high-value pharma outsourcing assets in Europe, a sector that attracted significant deal activity during the post-pandemic biologics boom and is now re-emerging as an acquisition target as valuations have adjusted. PolyPeptide is listed on the SIX Swiss Exchange and provides peptide-based APIs (active pharmaceutical ingredients — the chemically active components in drug products) to major pharmaceutical and biotechnology companies globally. The company occupies a specialised niche: peptide synthesis is technically demanding, capital-intensive, and subject to stringent GMP (Good Manufacturing Practice) regulatory requirements, making it difficult for sponsors to build equivalent capability organically. The interest from two of the largest global private equity firms — EQT, headquartered in Stockholm, and KKR, with a significant European M&A practice — suggests a competitive process may develop. No deal terms or bid values have been disclosed at this stage. Any transaction would require standard merger control clearances across relevant jurisdictions. The strategic rationale for a take-private is clear: PolyPeptide's public market valuation has lagged the growth trajectory of the CDMO sector broadly, creating an arbitrage opportunity for a long-hold PE buyer willing to invest in capacity expansion. The broader theme is one of European listed pharma services companies trading at discounts that make them attractive targets for patient capital.
Why this matters
A contested take-private of a listed Swiss CDMO by two blue-chip PE sponsors activates public M&A, leveraged finance, and regulatory clearance work simultaneously — exactly the multi-practice mandates that Magic Circle and elite US firms in London compete hardest for. The strategic logic mirrors the Synlab, Mehiläinen, and broader healthcare outsourcing take-private wave: PE buyers see durable cash flows from long-term pharma supply agreements and the ability to drive margin expansion post-privatisation. The 'why now' trigger is valuation correction — listed European CDMOs underperformed public markets through 2024-25 as biotech funding slowed, creating acquisition windows for sponsors with dry powder to deploy. Firms advising on comparable European pharma PE transactions — including the KKR-NewDay and related mandates — will be tracking this closely as a potential flagship 2026 transaction.
On the Ground
On this type of public M&A matter, a trainee would manage the CP (conditions precedent) checklist, tracking each regulatory clearance milestone from signing to completion. They would also assist with drafting board minutes documenting the target board's fiduciary consideration of the offer, and maintain the completion bible indexing executed transaction documents.
Interview prep
Soundbite
Competing PE bids for a listed CDMO compress timelines and drive up premiums — leveraged finance and regulatory teams mobilise in parallel from day one.
Question you might get
“If EQT and KKR are both circling PolyPeptide, what legal mechanisms govern how a competitive public takeover bid proceeds under Swiss law, and what would the PolyPeptide board's fiduciary obligations be to shareholders?”
Full answer
EQT and KKR have both indicated interest in acquiring PolyPeptide, a listed Swiss peptide CDMO. For law firms, a competitive take-private of this type generates simultaneous mandates across public M&A, leveraged finance for the acquisition debt package, and merger control filings across multiple jurisdictions. The commercial logic is straightforward: listed European healthcare services companies have underperformed since 2024, creating a gap between public market valuations and private equity's long-hold intrinsic value assessments. This fits a broader pattern of PE sponsors targeting CDMOs and healthcare outsourcing platforms as structurally resilient, contractually anchored businesses. Two competing sponsors also means auction dynamics — which historically yields higher takeover premiums and more complex deal structuring, sustaining advisory revenues longer.
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