CVC Capital Partners and Groupe Bruxelles Lambert on Friday launched a 10.7 billion euro ($12.43 billion) cash offer for Italian drugmaker Recordati, with plans to take the company private.
Italy’s fragmented pharmaceutical industry has seen increased deal activity in recent months as companies look to expand their scale. Angelini Pharma recently announced a $4.1 billion acquisition of Catalyst Pharmaceuticals, while Chiesi Farmaceutici agreed to buy U.S.-based KalVista Pharmaceuticals for 2 billion euros.
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CVC Capital Partners, which has controlled an investment vehicle holding a 46.8% stake in Recordati since 2018, submitted a non-binding proposal at the end of March to acquire all remaining shares and take the company private.
At the time, Recordati said the preliminary proposal depended on several conditions, including securing partners to support the deal.
The CVC-GBL consortium is now offering 51.29 euros per share in cash, excluding dividends, representing a 12.89% premium to Recordati’s closing share price on March 25, the day before the company disclosed CVC’s interest.
“CVC and GBL will partner as co-control investors with a clear commitment to support the company’s development over the long term,” the two partners said in a statement.
The move to take Recordati private is intended to give the company greater flexibility to explore opportunities, including possible acquisitions across its various business segments, a source familiar with the matter told Reuters.
Founded around 100 years ago by Giovanni Recordati as a family pharmacy in central Italy, Recordati has grown into a pharmaceutical group focused on primary care, consumer health, and rare diseases. The company also supplies pharmaceutical ingredients through its chemicals division.
The statement added that investors including Abu Dhabi Investment Authority, Canada Pension Plan Investment Board, and Recordati chairman Andrea Recordati will invest alongside CVC Capital Partners and Groupe Bruxelles Lambert.
