CVC and GBL Team Up for $12.47 Billion Offer to Privatize Recordati
CVC Capital Partners and Belgian investment firm Groupe Bruxelles Lambert (GBL) announced a joint €10.73 billion ($12.47 billion) offer to acquire full control of Recordati, aiming to take the Italian pharmaceutical company private.
The consortium, led by CVC, plans to delist Recordati from Euronext Milan and support the company through a new phase of accelerated research and development investment, strategic acquisitions, and expansion of its rare-disease portfolio.
Background on the Key Players
CVC Capital Partners, one of the world’s largest and most established private equity firms, was founded in 1981 and manages approximately €209 billion in assets under management. The firm operates across private equity, secondaries, credit, and infrastructure strategies from 29 offices globally. CVC is known for its long-term value creation approach, investing in high-quality companies and partnering with management teams to drive operational improvements and growth. In the healthcare sector, CVC has a strong track record of successful investments, often focusing on pharmaceutical, medical devices, and healthcare services companies.
CVC first invested in Recordati in 2018 and currently controls a vehicle holding a 46.8% stake, making it the company’s largest shareholder. This proposed transaction represents a continuation of CVC’s long-term commitment to the Italian drugmaker.
Groupe Bruxelles Lambert (GBL) is a leading Belgian investment holding company with over 70 years of history on the stock exchange. With a net asset value of around €13–14 billion, GBL focuses on long-term value creation through strategic investments in high-quality European and global companies, primarily in industrials, consumer goods, healthcare, and technology sectors. The company is backed by a stable family shareholder base and is known for active governance and supporting management teams in executing ambitious growth strategies.
Recordati, founded in the 1920s in Correggio, Italy, has grown into a significant international pharmaceutical company. Headquartered in Milan, it employs approximately 4,700 people and generates annual revenue of around €2.62 billion. The company operates in two main segments: Specialty and Primary Care (covering cardiovascular, urology, gastrointestinal, and other therapeutic areas) and Rare Diseases, where it has built a strong and growing presence. Recordati markets its products in approximately 150 countries and is recognized for its expertise in both common diseases and orphan drugs for rare conditions.
Deal Details
The offer values Recordati at €51.29 per share, which is 13% above the company’s share price before CVC’s initial approach was disclosed in March. Including a €0.71 per share dividend paid this week, the effective value rises to €52 per share.
To complete the transaction, the consortium will acquire the shares not already controlled by CVC, at an estimated cost of €5.7 billion. GBL has committed to invest up to 10% of its portfolio value, with the remainder funded by CVC and co-investors, including Abu Dhabi Investment Authority, CPP Investments, Recordati Chairman Andrea Recordati, and other funds.
The bid follows CVC’s earlier nonbinding proposal and satisfies key conditions, including completion of due diligence and securing of necessary partnerships and funding.
Strategic Rationale
The consortium stated that taking Recordati private will allow the company greater flexibility to invest aggressively in research and development and pursue acquisitions. This is particularly important for expanding its rare-disease business, an area that demands long-term capital commitment and patience — characteristics better suited to private ownership than public market pressures.
Recordati has built a solid foundation in specialty pharmaceuticals and is actively seeking to strengthen its position in high-growth rare-disease treatments. The backing of CVC and GBL is expected to support this strategic shift through increased R&D spending and bolt-on acquisitions.
This deal, if completed, would rank among the largest healthcare buyouts in Europe in recent years, highlighting continued strong investor appetite for quality pharmaceutical assets with stable cash flows and growth potential in specialized therapeutic areas.
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