EQT Partners offers $2.8bn takeover bid for Swedish pharma giant Recipharm

Swedish private equity firm EQT Partners has made a bold move in the pharmaceutical sector, offering to acquire Recipharm, a leading contract development and manufacturing organization (CDMO), for SEK 23.6 billion ($2.82 billion). The offer values Recipharm at SEK 220 ($26.3) per share, in a cash transaction that has attracted attention for its potential to reshape the global pharma manufacturing landscape. This takeover bid underscores EQT Partners’ ambitions to expand its footprint in the highly competitive pharmaceutical industry.

EQT IX, the fund managing this acquisition, has made it clear that it sees great potential in Recipharm’s established position in the global CDMO market. According to Erika Henriksson, a partner at EQT Partners and investment advisor to EQT IX, Recipharm has demonstrated significant growth over the years through strategic acquisitions, placing it in a strong position for further expansion. Henriksson emphasized that continued development of Recipharm will require substantial long-term investments, an area where EQT aims to provide critical support.

Founded in Sweden, Recipharm has developed a solid global presence, with manufacturing facilities spread across Europe, the United States, and India. The company’s expertise spans the full spectrum of pharmaceutical services, including the production of clinical trial materials, active pharmaceutical ingredients (APIs), and drug development. Notably, Recipharm has recently inked key partnerships, including one with US biotech firm Moderna to support the production of its mRNA-1273 COVID-19 vaccine candidate. This deal, along with Recipharm’s joint venture with Medspray to advance spray nozzle technology for pharmaceutical applications, highlights the company’s commitment to innovation in drug manufacturing.

The acquisition bid also involves some of Recipharm’s key stakeholders. Lars Backsell, chairman of the board, and Thomas Eldered, CEO and a member of the board, are participating in the offer through their indirect ownership of the company. Their involvement further cements the importance of the acquisition, given their significant roles in Recipharm’s growth and development.

Recipharm’s board of directors is now in the process of reviewing the offer. Anders G. Carlberg, chairman of the independent board, stated that the company had been in discussions with EQT and its major shareholders about the potential deal for some time. The board will now carefully evaluate the proposal and present its official recommendation to shareholders in the coming weeks.

This takeover proposal, if successful, would have far-reaching implications for both Recipharm’s future and the broader pharmaceutical manufacturing industry. With EQT’s financial backing and a clear vision for growth, Recipharm is well-positioned to continue its expansion and solidify its place among the leaders in global contract manufacturing services.