CVC and GBL to Take Italian Drug Company Recordati Private for €10.7 Billion

Private equity firm CVC Capital Partners and Belgian investment group GBL have submitted a €10.7 billion offer to acquire Italian drugmaker Recordati. The bid aims to take the company private by delisting its shares from the public market. This move is seen as a significant consolidation step in the European pharmaceutical sector. The joint offer from CVC and GBL includes a payment of €60 per share to Recordati's existing shareholders. This price represents a premium of approximately 20% over the company's last closing price. Recordati's board has formed an independent committee to evaluate the offer and is working with financial advisors to make a recommendation to shareholders. Recordati is known for specializing in rare diseases and cardiovascular drugs. The company's 2023 revenue was approximately €2 billion. If the acquisition is completed, CVC and GBL are expected to increase Recordati's R&D investments and expand into new markets. The financing for the deal will come from CVC and GBL's own equity as well as bank loans. The transaction is subject to regulatory approval and is expected to be completed in the second half of 2024. Recordati shares rose on the Milan Stock Exchange following the announcement of the offer. This is not investment advice.