CVC Capital Partners is preparing to back a massive bid to take full control of Italian pharmaceutical company Recordati. The Luxembourg-based private equity firm has proposed a €10.9 billion ($12.6 billion) deal that could reshape the ownership of the century-old business.

A Major Move in Pharma Private Equity

Recordati, a family-run pharmaceutical company marking its 100th year in operation, is considering a buyout offer from CVC Capital Partners. The offer values Recordati at €52 per share, which, when combined with CVC’s existing stake, amounts to a €10.9 billion price tag. That comes to about $12.6 billion in U.S. dollars.

Right now, CVC already holds a controlling interest of 47% in Recordati, thanks to a 2018 purchase where they spent €3.03 billion ($3.5 billion) for a majority stake. The new offer would allow CVC to take the company private by delisting it from the stock market.

That said, the offer is non-binding and hinges on several conditions. Recordati’s statement said due diligence must be completed, financial resources secured, and crucially, CVC will need to find partners to join in financing this big buyout. The deal looks big on paper, but it’s still early days.

Recordati’s Growth Story

Recordati isn’t just any pharma company — it has doubled its sales over the past decade.

Last year, the company posted total sales of €2.6 billion, which translates to about $2.9 billion.

The company has been making strategic moves in the rare disease space, a high-growth area in pharma. One notable acquisition was in 2021 when Recordati bought EUSA Pharma for €750 million ($845 million). That deal brought Iturisa, a drug for treating Cushing disease, into Recordati’s portfolio.

The company recently updated its sales outlook for Iturisa. In November, Recordati doubled its peak sales forecast for the drug, now projecting €1.2 billion ($1.4 billion) in peak revenue. This growth potential is a key reason CVC feels confident investing more.

What This Means for the Pharma Sector

Private equity firms have been increasingly drawn to the pharmaceutical sector, especially companies with strong specialty drug portfolios and growth potential. Recordati fits that mold perfectly. Its rare disease focus and expanding sales make it a prized asset.

The size of this deal really stands out. A €10.9 billion bid is a hefty sum for an Italian pharma company. The fact that CVC is looking for partners to share the financial burden shows the size and complexity of the transaction.

It shows how private equity is increasingly active in European pharma. Investors are chasing companies with stable cash flows and promising pipelines, especially amid volatile market conditions elsewhere.

Next Steps and Market Reaction

The offer was confirmed by Recordati after markets closed on Thursday, following a report from Italian financial news outlet Il Sole 24 Ore. That report alone was enough to push Recordati’s share price up by 5% during the trading day.

Recordati hasn't yet formally reviewed the offer. The company’s statement made clear that the proposal is subject to multiple conditions and that discussions are ongoing.

For CVC, lining up the right partners and securing financing will be key hurdles. Given the scale of the investment, it’s unlikely they will go it alone. The process could take months, during which the market will watch closely for developments.

Private equity firms keep betting big on pharma companies with strong growth and niche products. If the buyout goes through, it will mark a major milestone in Recordati’s history and a big deal in European pharma.

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Recordati’s next chapter could see it shift from a public company to private ownership under CVC’s full control, provided the private equity firm can secure the financial backing it needs. People in pharma will be watching closely as this develops.