Published On: Tue, Dec 15th, 2020

EQT offers to acquire Swedish CDMO Recipharm for $2.8bn

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Swedish private equity company EQT Partners has offered to takeover Recipharm, a Swedish pharma contract development and manufacturing organization (CDMO), for SEK 23.6 billion ($2.82 billion).

As per the terms of the offer, Recipharm’s shareholders are being offered SEK 220 ($26.3) in cash for each of its class B shares EQT IX, a fund managed by EQT.

Recipharm’s chairman of the board of directors – Lars Backsell and Thomas Eldered, the company’s member of the board of directors and CEO, who are its indirect shareholders and also founders, are taking part with EQT in the offer.

Erika Henriksson – Partner at EQT Partners and Investment Advisor to EQT IX said: “Recipharm has generated strong growth over the past years through a number of acquisitions, and today holds a strong position in the global CDMO market. EQT wants to support Recipharm’s continued development, which will require significant and long-term investments.”

EQT offers to acquire Swedish CDMO Recipharm for $2.8bn

EQT offers to acquire Swedish CDMO Recipharm for $2.8bn

Recipharm’s board of directors has appointed Carnegie Investment Bank as financial advisor, while its legal advisor is Vinge for the company in connection with the takeover proposal.

– Recipharm chairman of the independent board said: “We have had a dialogue for some time regarding a possible offer from EQT, Backsell and Eldered. The board will now thoroughly evaluate the offer and present its opinion to the shareholders in due course.”

Recipharm, which employs nearly 9,000 people, is engaged in providing manufacturing services of pharmaceuticals in various dosage forms, production of clinical trial material and APIs, development of pharma products and development and also manufacturing of medical devices.

Headquartered in Stockholm, the Swedish CDMO has development and manufacturing facilities across , Germany, , Portugal, , Israel, Italy, Sweden, the UK, and the US.

Last month, Recipharm inked a letter of intent with US biotech company Moderna for the formulation, filling, and finishing of the latter’s mRNA-1273 Covid-19 vaccine candidate.

Prior to that, the Swedish CDMO signed a deal to establish a joint venture called Resyca with Dutch manufacturer of high tech spray nozzles Medspray. Resyca will focus on developing and leveraging the softmist spray nozzle technology for pharma applications.

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