News Article

A consortium led by CVC Capital Partners and Groupe Bruxelles Lambert has launched a voluntary cash tender offer to take Italian pharmaceutical group Recordati private, valuing the company at €10.7bn.

The transaction, executed through the newly formed acquisition vehicle Respighi BidCo, signals a major strategic shift for the Milan-listed drugmaker as it seeks to shield its growth strategy from public market volatility.

CVC, which already controls a 46.8 per cent stake through its Rossini holding company, has irrevocably committed to tender its shares. Meanwhile, Groupe Bruxelles Lambert is deploying up to €1.3bn to secure a co-control position. A robust syndicate of co-investors, including the Abu Dhabi Investment Authority, Canada Pension Plan Investment Board, and chairman Andrea Recordati, is also firmly backing the deal.

For healthcare operators and investors, the strategic rationale centres heavily on Recordati’s lucrative rare disease platform. Having made sixteen acquisitions since 2018, the company is entering a demanding new phase of development requiring increased research and development spending alongside continued external acquisitions.

The consortium argues that accessing high-quality, early-stage assets in a competitive environment will inevitably introduce execution risk, longer timelines, and short-term earnings volatility. Consequently, they believe a private ownership structure supported by long-term capital is best suited to execute this strategy without the rigid constraints of quarterly financial reporting.

Transaction completion is anticipated in the fourth quarter of 2026, subject to standard regulatory clearances and a minimum acceptance threshold of 66.67 per cent. However, the consortium could face resistance from minority shareholders, as some analysts at independent European financial services company Kepler Cheuvreux have argued the offer undervalues the company’s fundamental long-term growth prospects.