CVC’s Bid for Recordati Involves Co-Investment Talks
CVC Capital Partners is seeking co-investment partners to support its proposed €10.9bn takeover of Italian pharmaceutical company Recordati, according to a report by Bloomberg citing unnamed sources, as detailed in Private Equity Wire. The firm has held early-stage discussions with sovereign wealth funds and institutional investors, including Groupe Bruxelles Lambert, Abu Dhabi Investment Authority, GIC, and Caisse de dépôt et placement du Québec, to syndicate part of the equity for the deal.
Details of the Transaction
The transaction requires an equity contribution of €5.5bn to €6bn, which would rank it among the largest leveraged buyouts in Europe in recent years, according to the report. CVC is pursuing this acquisition through its latest flagship fund, which already holds a stake in the Milan-listed group, and made an offer last month to acquire Recordati at €52 per share after previously exploring alternative strategic options for its existing holding. If the deal succeeds, CVC is expected to review portfolio optimisation opportunities, including potential divestments of non-core assets such as Recordati’s rare diseases division.
Background on Recordati
Founded in 1926, Recordati has evolved into a diversified pharmaceutical group focused on specialty and primary care, consumer health products, and rare disease treatments, as noted in the report. The company’s portfolio includes therapies like Zanidip for hypertension and Eligard for prostate cancer, alongside a chemicals division that supplies active ingredients to the pharmaceutical industry.
Early Stage and Uncertainties
Discussions with potential co-investors remain at an early stage, with no certainty that any arrangements will be finalised, and all parties have declined to comment, according to Private Equity Wire. As widely known in private equity circles, such co-investment strategies help firms manage large deals by sharing equity risks.
