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Private equity firm CVC Capital Partners (CVC.AS) and Belgian investment group Groupe Bruxelles Lambert (GBLB.BR) launched a 10.7 billion euro ($12.43 billion) cash bid for Italy's Recordati (RECI.MI) on Friday, aiming to take the company private.
Italy's fragmented pharmaceutical sector has seen a flurry of dealmaking in recent months as companies seek to scale up, with Angelini announcing a $4.1 billion acquisition of U.S.-listed Catalyst Pharmaceuticals (CPRX.O) and Chiesi buying U.S.-based KalVista Pharmaceuticals (KALV.O) for 2 billion euros.
CVC, which has since 2018 controlled a vehicle holding a 46.8% stake in Recordati, submitted a non-binding expression of interest at the end of March for all of the company’s shares, with the aim of delisting it.
The preliminary offer was subject to a number of conditions, including the identification of partners to support the bid, Recordati said at that time.
The CVC-GBL consortium is offering 51.29 euros per share in cash ex-dividend, a premium of 12.89% compared to Recordati's share price on March 25, the day before the Italian company announced 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 plan to take Recordati private is aimed at better exploring options, including potential new deals, across its different business lines to unlock value, a source with direct knowledge of the matter told Reuters.
Founded a century ago by Giovanni Recordati as a family pharmacy in a town in central Italy, Recordati now has businesses covering primary care, consumer health and rare diseases. It also supplies other pharmaceutical companies through its chemicals division.
A group of investors including Abu Dhabi Investment Authority (ADIA), Canada Pension Plan Investment Board and the company's chairman Andrea Recordati will invest alongside CVC and GBL, the statement added.
($1 = 0.8610 euros)
