CVC Capital Partners leads consortium in €3.03bn acquisition of Recordati

In a landmark deal valued at approximately €3.03 billion, a consortium led by CVC Capital Partners through its CVC Fund VII has acquired a 51.8% stake in the Italian pharmaceutical company, Recordati. The consortium also includes notable investors such as Canada’s Public Sector Pension Investment Board (PSP Investments) and US-based StepStone.

Strategic Implications of the Acquisition

This acquisition gives CVC Capital Partners, along with its consortium partners, a controlling share in Recordati, providing them with a significant foothold in the global pharmaceutical market. Recordati, a company with a history dating back to 1926, is listed on the Italian Stock Exchange and employs over 4,000 people across various regions including Italy, Russia, Central and Eastern Europe, Turkey, North Africa, the Americas, and some South American countries.

The deal is strategically aimed at bolstering CVC’s portfolio in the healthcare sector, allowing them to leverage Recordati’s extensive network and product range, which includes popular pharmaceuticals such as Zanipress, Zanextra, Lercaril, and Carifoe among others.

Acquisition Details and Future Plans

The transaction, which values Recordati at a total of €5.86 billion, is set to be finalized in the fourth quarter of this year, pending mandatory competition approvals. Cathrin Petty, Head of EMEA Healthcare at CVC, commented on the acquisition, stating, “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.”

Following the acquisition, CVC intends to launch a takeover offer for the remaining 49.2% stake in Recordati, aiming for a complete buyout.

Executive Insights

Andrea Recordati, CEO of Recordati, expressed his views on the acquisition: “I believe that this is a 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.”

This acquisition is indicative of the ongoing consolidation trends in the pharmaceutical industry, where companies are increasingly looking to merge and acquire to streamline operations and expand their market reach.

For CVC, this acquisition not only enhances their portfolio but also strategically positions them in the global market, especially in areas with growing healthcare needs.

The acquisition of Recordati by CVC Capital Partners marks a significant shift in the pharmaceutical landscape, highlighting the strategic moves by major players to consolidate their positions in a competitive market. As the deal progresses, it will be interesting to observe how this influences the broader industry dynamics.