BRIEF—CVC agrees terms to take control of Italy's Recordati

As was forecast earlier this month, a London-based CVC Capital Partners-led consortium of investment funds has agreed to acquire a controlling stake in Recordati, a leading Italian drugmaker that is majority family owned.

The transaction is structured as a fully financed acquisition by the consortium of the family’s holding company FIMEI SpA for an enterprise value of 3.03 billion euros ($3.5 billion).

FIMEI owns 51.8% of Recordati implying a 100% equity value for Recordati of 5.86 billion euros, equivalent to 28.00 euros per share.

The 3.03 billion euro price will comprise 2.3 billion euros in cash and 750 million euros in subordinated long-term securities.

The Milan-traded shares of Recordati closed up 2.18% at 34.27 euros after the announcement on Friday.

“It was important to find a party that would allow Recordati to remain independent ... and accelerate its growth strategy as a leading global consolidator in the industry,” said chief executive Andrea Recordati, who will continue to lead the Italian group and said he had reinvested in the company.

Closing of the FIMEI purchase is anticipated to take place in the last quarter of 2018 and is subject only to mandatory competition approvals.