In the last few weeks Swedish pharmaceutical group Recipharm, listed at the Stockholm Stock Exchange, signed an agreement to buy Italian pharmaceutical services provider Corvette Group Pharmaceutical Services spa from Italian private equity operator Lbo Italia Investmenti spa (download here the press release).
Led by ceo Roberto Teruzzi, Milan-based Corvette Group has been valued 130 million euros included debt or 8x the 2013 ebitda. The company reached 57.7 million euros of revenues in 2013 with 15 millions of ebitda and a financial net debt of about 20 millions. The equity value of about 100 millions will be paid half in cash and half in convertible bonds maturing in September 2014 which will be entirely subscribed by Lbo Investimenti. Closing is expected on 1st October 2014 following Recipharm’s Extraordinary General Meeting to authorise the Board of Directors to issue the convertible bonds.
The deal provides Recipharm with access to highly interesting geographical areas including Italy and a number of emerging markets, many of which are new to Recipharm.
Unique financial advisor for Lbo Investimenti was Rothschild. Legal advisors for the private equity fund were d’Urso, Gatti e Bianchi and Gernandt&Danielsson law firms. Legal advisors for Recipharms were White&Case and Setterwalls law firms.
Recipharm owns production plants in Sweden, France, United Kingdom and Switzerland and a development site in Sweden. The group closed year 2013 with 245.7 million euros of revenues (2,125 million crowns) and 42.7 millions (283 million crowns) of ebitda.
Lbo invested in Corvette in 2009. Since then the group grew fast through acquisitions basing its strategy on acquiring companies which have thorough know-how and cutting-edge technology and production methods resulting from years of experience in the pharmaceutical sector, and which operate exclusively on behalf of third parties. The first company acquired by the Corvette, in December 2009, was Biologici Italia Laboratories, a company specialising in the production of sterilised injected products in freeze-dried and liquid form, launched in the 70s upon the initiative of Dr. Filippo Serpero. One year later, in December 2010, Liosintex was purchased, founded in 1973, providing bulk lyophilisation services for beta-lactam, penicillin and cephalosporin antibiotics. The third company acquired, in July 2011, was Edmond Pharma, also launched in the 70s, operating in the production and development of Erdosteine, active ingredients and generic finished products.
Lbo Italia investimenti in Italy also owns Dental Care (a chain of odontoiatric clinics with Doctor Dentist brand) and Geotea (a company specialized in waste management and energy production).