CVC Eyes Recordati Take-Private with €10B Bid

CVC Capital Partners is reportedly in advanced discussions to acquire the Milan-listed pharmaceutical firm Recordati in a deal valued at approximately €10 billion. The private equity giant is seeking to secure between €5.5 billion and €6 billion in debt financing from a consortium of major lenders, including Mediobanca, Goldman Sachs, Jefferies, J.P. Morgan, and Deutsche Bank, to support the potential take-private transaction. This move signals significant private equity interest in the European healthcare sector, a market that has seen robust activity driven by the demand for specialized pharmaceutical assets.

Should the deal materialize, it would represent one of the largest private equity buyouts in Italy in recent years. The pharmaceutical industry, particularly in Europe, continues to attract substantial investment due to its stable revenue streams and potential for growth through innovation and market consolidation. Recordati, with its established presence in cardiovascular, urological, and rare disease treatments, presents an attractive target for a firm like CVC looking to leverage its operational expertise and capital to drive further expansion.

Potential co-investors in this significant transaction could include sovereign wealth funds and large institutional investors, such as Groupe Bruxelles Lambert, ADIA (Abu Dhabi Investment Authority), GIC (Singapore's sovereign wealth fund), and Caisse de dépôt et placement du Québec. The involvement of such prominent global investors underscores the strategic importance and perceived value of Recordati within the international investment community. Their participation would provide substantial backing and validate the strategic rationale behind the proposed acquisition.

In other Italian market developments, TIM is nearing the finalization of its €700 million sale of its submarine fiber optic network subsidiary, Sparkle. The deal involves a joint bid from the Italian Ministry of Economy and Finance (MEF), which would hold a 70% stake, and Retelit, a portfolio company of Asterion Industrial Partners and Marguerite, acquiring the remaining 30%. This divestment is part of TIM's broader strategy to streamline its operations and reduce debt, with proceeds earmarked for a share buyback program of up to €400 million. The transaction highlights the ongoing restructuring within the Italian telecommunications sector and the strategic importance of digital infrastructure assets.

Further consolidation is evident in the luxury goods supply chain. Italian tannery Conceria Pasubio – Unica, under the ownership of PAI Partners since 2021, has acquired Luilor. The founders of Luilor, the Tiziana Gnuccoli and Biagioni families, are reinvesting in the combined entity. This acquisition aims to bolster Conceria Pasubio's position in the high-end fashion and design market, integrating complementary capabilities and expanding its product offering. The deal was supported by advisors including Facchini Rossi Michelutti, STS Deloitte, Latham & Watkins, Impacta Strategy, and Ethica Group for the buyer, while Xpertia advised the sellers.

In the industrial sector, Investindustrial-backed Italian crane manufacturer Fassi Group has expanded its North American footprint by acquiring Fascan International. Fascan International, the U.S. distributor for Jekko cranes and Fassi products, was previously owned by the Faloney Family. This strategic acquisition by Fassi Group, a portfolio company of Investindustrial since 2024, aims to enhance its distribution network and market penetration in the United States, a key growth market for heavy machinery and construction equipment.