Private equity giant CVC Capital Partners and Belgian investment group GBL have launched a €10.7 billion ($12.43 billion) all-cash voluntary offer to acquire Italian pharmaceutical group Recordati, with the goal of delisting the company from the Milan stock exchange.
"The offer is supported by a committed, flexible and stable shareholder base, where CVC and GBL will partner as co-control investors with a clear commitment to support the Company’s development over the long term," the firms said in a joint statement.
The offer price of €51.29 per share represents a 12.89% premium over Recordati's closing price on March 25, the day before CVC's initial non-binding interest was made public. The bid is being made through a newly-formed Italian joint stock company.
The move to take Recordati private has secured the backing of the company's controlling shareholder, Rossini, which has committed to tendering its entire 46.82% stake in the company. This significantly increases the likelihood of the deal's success, with the offer's timeline for completion and required regulatory approvals not yet disclosed.
The acquisition of Recordati, a group with a strong portfolio in rare diseases and specialty pharmaceuticals, marks a significant private equity push into the European healthcare sector. The deal is one of the largest in the sector this year and will be closely watched by investors for its impact on valuations of other mid-sized European pharmaceutical companies. The successful delisting of Recordati would allow CVC and GBL to pursue a long-term growth strategy without the pressures of the public markets.
This article is for informational purposes only and does not constitute investment advice.
