Published On: Sun, Jul 1st, 2018

CVC to acquire €3.03bn worth stake in Italian pharma company Recordati

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Pharma acquisition news : CVC Capital Partners through its CVC Fund VII has led a consortium of funds to acquire a stake of 51.8% in Recordati, an Italian pharma company in a deal worth around €3.03 billion.

The consortium also includes Canada’s Public Sector Pension Investment Board (PSP Investments) and US-based StepStone.

Founded in 1926, the Italian Stock Exchange-listed Recordati has a workforce of over 4,000 with operations across Italy, Russia, other Central and Eastern European nations, Turkey, North Africa, the US, Canada, Mexico and also in certain South American nations.

The Milan-based Italian pharma company is focused on the research, development, manufacturing and marketing of pharmaceuticals. Some of its products include Zanipress, Zanextra, Lercaril, Lercarpel, Carifoe, Zanidip, Muvagyn, Reuflor, Seloken and others.

CVC Capital Partners, which is looking to buy out 100% of the Italian pharma company, will buy the majority stake from FIMEI at €28.00 per share. For now, the private equity firm based in Luxembourg will buy out 100% of FIMEI, the closing of which is expected to be completed in the fourth quarter of this year, and will be subject to mandatory competition approvals only.

The transaction values 100% of Recordati at €5.86 billion.

Photo courtesy of Stuart Miles/Freedigitalphotos.net.

Business News Update. Photo courtesy of Stuart Miles/Freedigitalphotos.net.

Commenting on the Recordati transaction, Cathrin Petty – Head of EMEA Healthcare at CVC, said “Recordati has always been a very carefully managed, international pharma company with a broad platform of products and a strong geographical footprint in primary care. Over the last decade Recordati has built up a very attractive rare disease business which we look forward to expanding in addition to the core business.

“We hope that through our expertise and global healthcare network we will help accelerate this growth across orphan and specialty care to build a global leader in the industry.”

Following the CVC Fund VII consortium acquisition of FIMEI, a takeover offer for the remainder stake of 49.2% in Recordati will be launched.

Andrea Recordati – CEO of Recordati, commenting on CVC investment in the Italian pharma company, said: “I believe that this is great outcome for the company and its employees who will benefit greatly from having CVC as a partner.

“In the process of finding the best partner to take Recordati forward, it was important to find a party that would allow Recordati to remain independent, with continuity for management and employees, and accelerate its growth strategy as a leading global consolidator in the pharmaceutical industry.”

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