CVC, GBL Bid for Recordati in €10.7B Deal

In a significant move within the European pharmaceutical sector, CVC Capital Partners and Groupe Bruxelles Lambert (GBL) have initiated a substantial take-private offer for the Milan-listed pharmaceutical firm Recordati. The proposed transaction values the company at an impressive €10.7 billion. This strategic maneuver signals a strong conviction in Recordati's future prospects and its potential for further value creation away from public market scrutiny.

The financing structure for this ambitious deal is robust, comprising €4.525 billion in equity contributions from the acquiring consortium. Additionally, a €4.1 billion bridge financing facility, coupled with €6.05 billion in bank loans, will underpin the acquisition. A notable component of the financing includes €1.53 billion in senior PIK toggle notes, a portion of which has been subscribed by clients of Banor SIM, demonstrating broad financial backing. The lending syndicate for this transaction is extensive, featuring prominent names such as Goldman Sachs AM, KKR, Blackstone, Clearlake, CVC Capital Solutions, and Marathon Asset Management.

Recordati shareholders have been presented with an offer of €51.29 per share. The initial tender period is set to conclude on October 15th, with payments anticipated by October 23rd. However, the offer period may be extended, potentially through to October 30th, with payments then scheduled for November 9th. This extended timeline provides shareholders with ample opportunity to consider the offer, while also allowing the acquirers flexibility in finalizing the transaction.

In parallel, the healthcare services sector sees activity with HIG Capital's portfolio company, Medisolve, acquiring a majority stake in Germany's WISAG Medizintechnischer Service (WISAG MS). The seller, WISAG, will retain a minority interest in the business. This acquisition aligns with Medisolve's strategy to expand its footprint and service offerings within the medical technology maintenance and service domain. The transaction saw Medisolve advised by Abolon, EY, Wiese Lukas, and Loeschner Rechtsanwaltsgesellschaft, while WISAG was supported by Biere Doerner Faller rechtsanwalte.

Further diversification in private equity investments is evident with CDP Equity's acquisition of an 85% stake in T-Defence (formerly Tinexta Defence Holding) from Tinexta. This move is preparatory to an aggressive buy-and-build strategy, aiming to consolidate and grow the defense technology sector. Meanwhile, Clessidra Private Equity has secured a 70% controlling interest in Errebi Technology from its founder, Massimiliano Paglione, who will reinvest the remaining 30% and continue to be involved in the company's growth. The financing for this deal was provided by a consortium of banks including Banca Ifis, Cassa Centrale Banca, and Banca Prealpi SanBiagio.

The Italian private capital market also witnessed the formation of a new permanent capital vehicle, Clubinv, a joint venture between Banca Finint and Private Equity Partners, founded by Fabio Sattin. This initiative aims to provide long-term capital solutions. The leadership team includes Alessandra Stea as CEO, Fabio Sattin as Chairman, and Francesco Lorenzoni as operative Vice Chairman. The launch was supported by legal and advisory firms including Grimaldi Alliance, Studio SAT, and Russo De Rosa Associati.