CVC Capital revs up rare disease ambitions with $3.5B Recordati buyout
Recordati has finally sealed a sale. Private equity player CVC Capital Partners said (PDF) Friday it would drop €3.03 billion—€2.3 billion in cash and €750 million in long-term debt — to pick up the Recordati family’s 51.8% controlling stake in the company.
The agreement follows a Financial Times report that squabbling among members of the Recordati family—who have been weighing a sale since the 2016 death of CEO Giovanni Recordati—might have scuttled a potential deal. Political uncertainty in Italy also gave CVC pause at one point, the FT noted.
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Now, though, Recordati has a “great outcome” on its hands, CEO Andrea Recordati—who will stay on as skipper after the deal closes—said in a statement.
“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,” he said in a statement, adding that he was “personally reinvesting … as I believe in and support Recordati.”
CVC, for its part, is hoping it can expand Recordati’s “very attractive rare disease business” alongside the company’s core business, Cathrin Petty, CVC’s head of EMEA healthcare, said in her own statement.
“We hope that through our expertise and global healthcare network we will help accelerate this growth across orphan and specialty care to build a global leader in the industry,” she said. CVC’s portfolio currently includes Italian generics maker DOC Generici, as well as copycat Alvogen.
Before landing on CVC as a deal partner, Recordati held informal talks with Asian bidders, and private equity firms Bain and Cinven also reportedly took a look at the company. Before selling, though, Recordi put on its buyer’s hat, forking over $300 million to AstraZeneca in exchange for European rights to heart drug Seloken and related combo product Logimax.
Jul 2, 2018
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