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Italy : RECIPHARM eyes CORVETTE in SEK 1.1 billion deal

August 25, 2014

A contract development and manufacturing organization (CDMO), Recipharm, has announced that it has inked a deal worth SEK 1.1 billion or over EUR 120 billion to acquire Corvette Pharmaceutical Services Group (Corvette).

The deal will see Recipharm acquiring Corvette from Italian private equity Group LBO Italia Investimenti for its estimated 2013 earnings and EBITDA proforma financials.

Recipharm will make half the payment by cash while the balance 50 percent will be made in the form of a convertible bond.

Corvette presently owns three production plants established in the Milan region of Northern Italy. The three facilities jointly staff 265 employees and serve over 100 clients, including global generic firms, big pharma, and mid-size specialty pharma firms.

CEO of Recipharm, Thomas Eldered, said the deal is in line with the company's strategic expansion.

He added : "We will be gaining access to a first class and largely new customer base as well as new capabilities and capacities that will add to our technology base We are therefore looking forward to combining the assets of both organizations and working together with the management of Corvette to deliver benefit to all of our stakeholders."

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Source: TendersInfo (India)

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