Key Takeaways
- • CVC Capital Partners is actively syndicting its €10.9bn ($12.7bn) acquisition of Italian pharmaceutical company Recordati, seeking co-investment partners to share the equity cheque of €5.5bn–€6bn, positioning this among Europe's largest recent leveraged buyouts.
- • CVC has initiated early-stage discussions with multiple sovereign wealth funds and institutional investors, including Abu Dhabi Investment Authority, GIC, Caisse de dépôt et placement du Québec, and Groupe Bruxelles Lambert, though no commitments have been finalized.
- • The acquisition targets the remaining 48.2% of Recordati's public shares at €52 per share; CVC already holds an existing stake in the Milan-listed pharmaceutical group through its latest flagship fund.
- • Post-acquisition, CVC is expected to pursue portfolio optimization including potential divestment of non-core assets such as Recordati's rare diseases division, signaling a focus on core specialty care and primary care operations.
- • Recordati, founded in 1926, operates a diversified pharmaceutical portfolio including branded therapies (Zanidip for hypertension, Eligard for prostate cancer) and a chemicals division supplying active ingredients industry-wide.
Summary
CVC Capital Partners is pursuing co-investment partners to support its €10.9bn acquisition of Recordati, the Italian pharmaceutical company, according to Bloomberg. The firm is in early-stage discussions with a range of sovereign wealth funds and institutional investors including Abu Dhabi Investment Authority, GIC, Caisse de dépôt et placement du Québec, and Groupe Bruxelles Lambert, as it seeks to syndicate a portion of the required equity contribution.
The transaction requires an equity cheque in the region of €5.5bn to €6bn, establishing it as one of the largest leveraged buyouts executed in Europe in recent years. CVC is advancing the acquisition through its latest flagship fund, which already maintains an existing holding in the Milan-listed group. The firm made its offer last month at €52 per share for the remaining 48.2% of Recordati's publicly traded shares. Discussions among all parties remain at an early stage, with no certainty regarding final co-investment arrangements, and relevant parties have declined to comment.
Should the transaction proceed, CVC is expected to conduct a portfolio optimization review with a view toward potential divestments of non-core assets, particularly Recordati's rare diseases division. This signals CVC's strategic focus on the company's specialty and primary care operations. Recordati, established in 1926, has evolved from a family-owned pharmacy business into a diversified pharmaceutical group with established therapies in its portfolio—including Zanidip for hypertension and Eligard for prostate cancer—alongside a chemicals division that supplies active pharmaceutical ingredients to the broader pharmaceutical industry.
The transaction requires an equity cheque in the region of €5.5bn to €6bn, establishing it as one of the largest leveraged buyouts executed in Europe in recent years. CVC is advancing the acquisition through its latest flagship fund, which already maintains an existing holding in the Milan-listed group. The firm made its offer last month at €52 per share for the remaining 48.2% of Recordati's publicly traded shares. Discussions among all parties remain at an early stage, with no certainty regarding final co-investment arrangements, and relevant parties have declined to comment.
Should the transaction proceed, CVC is expected to conduct a portfolio optimization review with a view toward potential divestments of non-core assets, particularly Recordati's rare diseases division. This signals CVC's strategic focus on the company's specialty and primary care operations. Recordati, established in 1926, has evolved from a family-owned pharmacy business into a diversified pharmaceutical group with established therapies in its portfolio—including Zanidip for hypertension and Eligard for prostate cancer—alongside a chemicals division that supplies active pharmaceutical ingredients to the broader pharmaceutical industry.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.