Private equity firm CVC Capital Partners has signed an agreement to acquire a 51.8% stake in Italian pharmaceutical group Recordati for a total consideration of around €3bn or €28 per share.
The transaction will be carried out through a consortium of investment funds, which is led by CVC Fund VII and also includes PSP Investments and StepStone, that will buy FIMEI, the investment vehicle through which Recordati family owns the 51.8% stake in the company.
Under the terms of the agreement, €2.3bn will be paid in cash and the remaining €750m as subordinated long-term debt securities.
The deal is expected to help Recordati to strengthen its pharmaceutical footprint while continuing as an independent entity.
Recordati CEO Andrea Recordati said: “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.
“I am very pleased to be working alongside CVC in accelerating Recordati’s global expansion.”
Founded in 1926, Recordati focuses on pharmaceutical research, development, manufacturing and marketing. The firm is primarily working on therapies for rare diseases, but also intends to carry out research for new specialties.
The pharmaceutical group operates in multiple European countries, the US, Mexico, Canada, Turkey, North Africa and Russia. It employs a total of 4,100 people.
CVC Capital Partners Europe, the Middle East and Africa Healthcare head Cathrin Petty said: “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 specialist care to build a global leader in the industry.”
Subject to mandatory competition approvals, the acquisition is expected to complete in the last quarter of this year.