Pass the hand Recordati, the pharmaceutical company founded in 1926 by the family of the same name: it acquired the majority of the British private equity fund CVC led by Giampiero Mazza. From a pharmacy with a laboratory to a group that capitalizes around 7 billion euros and has a turnover of 1,28 billion. A growth also fueled by the many acquisitions that have followed and which have been facilitated by the listing on the Stock Exchange which dates back to 1984.
The shareholders of Fimei, the holding company that owns about 51,8% of the group, have reached an agreement to sell all the stake to a consortium of investment funds controlled by CVC Capital Partners. As stated in a note, which confirms the rumors circulated in recent days, CVC will pay around 3 billion euros, or 28 euros per share (2,3 billion at the closing and 750 million in long-term subordinated debt financial instruments). The agreement is conditional only on obtaining the necessary antitrust clearances. Once they have been obtained, at the closing of the transaction, the investors will have to launch a total public purchase offer addressed to all the minority shareholders.
Translated from the language of the press releases, the gist of the story is that another jewel of Made in Italy changes owners to grow and goes abroad. Even if Andrea Recordati – who currently has all the responsibilities as CEO – will remain at the helm of the company and will maintain an investment relationship, the family relies on CVC to grow further. Furthermore, having set the price per share at 28 – below the 34,6 euro at the closing of the Stock Exchange on Friday 29 June – indicates that the tender offer on the free float will probably not be subscribed and that the stock will remain listed.
“I am delighted to have met a group of high-profile investors,” he said Andrea Recordati – to continue developing the company in the years to come. I am also delighted that CVC has asked me to remain in the company as CEO, alongside the current management team, recognized for their professionalism and dedication. In the process of selecting the best partner to further grow Recordati, it was important to find a party that would allow the company to remain independent, with continuity for management and other employees, and to accelerate its growth strategy through acquisitions. Therefore, I have chosen to reinvest personally in this operation, alongside the Investors." The other family members – Hillary, Alberto and Cristina – will also maintain a relationship with the company.
In fact, the financial architecture of the transaction envisages the payment of 2,3 billion at the closing expected by the end of the year. The other 750 million will be paid in long-term (5-7 years) subordinated debt instruments, which means that the Recordati family will remain long-term creditors and involved in the group.
Recordati is, in chronological order, the last of the Made in Italy jewels passed into foreign hands. The most recent - to be sold - was Italo Ntv, the railway company that operates in the High Speed railway founded by Montezemolo and Della Valle (sold for 2 billion to the US Gip Fund). In Fashion and Luxury the names are no longer counted: from Gucci to Fendi, from Bulgari to Pomellato, from Bottega Veneta to Sergio Rossi and many others. In the food sector, Parmalat, Buitoni and Perugina as well as the historic Pasticceria Cova in Milan.
