CVC Capital Partners Pursues Co-Investment for Recordati Buyout
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 people familiar with the matter. 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, as it aims to syndicate part of the equity cheque for the deal. The transaction would require an equity contribution of €5.5bn to €6bn, positioning it among the largest leveraged buyouts in Europe in recent years, and CVC is pursuing the acquisition through its latest flagship fund, which already holds a stake in the Milan-listed group.
Early-Stage Discussions and Deal Structure
CVC made an offer last month to acquire Recordati at €52 per share, having previously explored alternative strategic options for its existing holding. Discussions with potential co-investors remain at an early stage, and there is no certainty that any co-investment arrangements will be finalised, with all parties declining to comment. If the takeover succeeds, CVC is expected to review portfolio optimisation opportunities, including potential divestments of non-core assets such as Recordati’s rare diseases division, according to Private Equity Wire. The equity contribution needed underscores the scale of the deal, as it involves syndicating a significant portion among the listed investors.
Background on Recordati
Founded in 1926, Recordati has evolved from a family-owned pharmacy business into a diversified pharmaceutical group with a focus on specialty and primary care, consumer health products, and rare disease treatments. Its portfolio includes established therapies such as Zanidip for hypertension and Eligard for prostate cancer, alongside a chemicals division that supplies active ingredients to the wider pharmaceutical industry. As a Milan-listed company, Recordati represents a key target in the European private equity landscape, where large buyouts often involve strategic asset reviews. In the broader context of private equity, such deals frequently require co-investments to manage risk, as is widely known in the industry.
Potential Implications
The proposed takeover could lead to portfolio optimisation at Recordati, with CVC eyeing divestments of non-core assets, building on its existing stake in the company. According to Private Equity Wire, these early discussions highlight the firm’s strategy to leverage partnerships for major acquisitions in the pharmaceutical sector. While specifics on outcomes remain uncertain, the involvement of prominent investors like Abu Dhabi Investment Authority and GIC illustrates the global interest in European buyouts of this magnitude.
