Five PE shops study Tailwind’s VersaPharm

Target: VersaPharm

Price: $64 million to $80 million

Multiple: 8x to 10x

Sponsor: Tailwind Capital

It was unclear who the firms are that are contending for the company, sister website peHUB reported. One buyout executive said lower mid-market firms would be most interested in VersaPharm.

Tailwind Capital acquired VersaPharm in 2007. The generic drug maker’s EBITDA has grown to $50 million from $8 million, a different source said. Tailwind is seeking bids of 8x to 10x, the person said.

Marietta, Georgia-based VersaPharm develops generic products designed to treat tuberculosis and other infectious diseases, the Tailwind Capital website said.

New York-based Tailwind Capital spun off in 2006 from Thomas Weisel Partners, the San Francisco-based investment bank. The firm targets mid-market companies in healthcare and business and communication services.

The auction comes as Tailwind is out fundraising for its second pool. The private equity firm is seeking $750 million for Tailwind Capital Partners II LPaccording to an SEC filing in October. MVision is the placement agent.

Executives at Tailwind and VersaPharm did not return calls requesting comment.

Luisa Beltran is a senior writer for peHUB.