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CVC Lands Groupe Bruxelles Lambert's Support to Make EUR11 Billion Bid for Italy's Recordati

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CVC Lands Groupe Bruxelles Lambert's Support to Make EUR11 Billion Bid for Italy's Recordati

CVC Capital Partners (CVC.AS) secured backing from Groupe Bruxelles Lambert (GBLB.BR) to move ahead with a 10.7 billion-euro bid for Italian pharmaceutical company Recordati (REC.MI).

A consortium led by the two investment firms on Friday launched a voluntary cash tender offer for all of Recordati's shares at 51.29 euros per share. The per-share price reflects a 12.89% premium to Recordati's closing price on March 25, just before CVC first made a non-binding approach.

CVC-controlled Rossini, which owns a 46.82% stake in Recordati, agreed to tender its shares under the offer. The buyers will also have support from Abu Dhabi Investment Authority's Luxinva, CPP Investment Board Private Holdings, PSP Europe, StepStone-advised funds, AlpInvest-advised funds, MGG Strategic, CapSol funds, and Andrea Recordati.

The deal is expected to close in the fourth quarter, subject to regulatory approvals and acceptance by shareholders representing at least 66.67% of Recordati's share capital. Following the tender offer, Recordati is intended to be delisted from Euronext Milan and under joint control of the consortium.

CVC in 2018 acquired a majority stake in the pharmaceutical company, which was founded in the early 1900s as a small pharmacy. It now has divisions covering specialty and primary care, rare diseases, along with industrial operations.

CVC and Groupe Bruxelles Lambert shares inched up in early morning trading in Amsterdam and Brussels, respectively, while Recordati's stock was down slightly in Milan.

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