Intermediate Capital Group (ICG) will acquire the Italian pharmaceutical group Doc Generici so far in the portfolio of CVC Capital. it was announced by ICG this morning (see here the press release), confirming the news reported by Bloomberg a few days ago.
The pool of lending banks would include Unicredit, Bnp Paribas, Credit Agricole and Barclays, while the deal’s legal advisors have been Gattai Minoli Agostinelli and Legance. White&Case supported Mérieux from the legal standpoint, whileCVC was supported by Legance from the lìlegal perspective and from e Facchini Rossi & soci from the fiscal perspective.
The transaction is said to be worth 1.1 billion euros, considering that FY 2018 saw revenues exceed 200 million euros from about 180 million in 2017, when the group had reached 67.7 million in ebitda with a net financial debt of 266 million euros (see the Leanus analysis here, after registering for free).
For DOC Generici, this is the third round of private equity funds. In fact, CVC had acquired control of the company specializing in the production of generic drugs from the British fund Charterhouse (see here a previous post by BeBeez). On that occasion Doc Generici was valued at 650-680 million euros based on a consolidated 2015 turnover of around 180 million and an ebitda of 61 million. The buyout was financed by Unicredit and Hsbc.
Charterhouse in turn had acquired control of DOC Generici in 2013 from industrial groups Apotex, Chiesi Farmaceutici and Zambon. for an evaluation then of 7-8 times the ebitda, for a value included between 320 and 340 millions, based on a 2012 Doc Generici turnover of 131.8 million and an ebitda of 43 millions (see here a previous post by BeBeez). In the sale, Charterhouse posted an Irr of 40% or 2.7 times the invested capital.
(Article changed at 13.30 of the 8th April 2019, in order to add details from the press release sent after the article publication)