Mérieux, ICG invest in Italian pharma company Doc Generici

Alessia Argentieri
08 April 2019

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Mérieux Equity Partners has acquired Italian pharmaceutical company Doc Generici.

According to press reports, the company has an enterprise value of around €1.1bn.

Intermediate Capital Group (ICG) invested in the company alongside Mérieux by deploying capital from its Europe VII Fund, which closed on €4.5bn in November 2018. The vehicle provides long-term financing for growing private companies across Europe.

Mérieux drew capital from Meriux Participations 3, which was launched in July 2018 with a €300m target. The fund targets fast-growing companies within the healthcare and nutrition markets. This transaction is the first investment made by the fund in Italy.

The sale ends a two-year holding period for CVC Capital Partners, which wholly acquired Doc Generici from Charterhouse Capital Partners via its CVC European Equity Partners VI fund. The business was valued at between €650-680m at the time. Unicredit and HSBC provided debt financing to support the transaction. Charterhouse scored a 2.7x money multiple (equating to a 40% IRR) following the sale.

Previous funding
Charterhouse, via its Capital Partners IX fund, bought Doc Generici in 2013 in an MBO from pharmaceutical companies Apotez, Chessi Farmaceutici and Zambon. The deal value remained undisclosed, but it was reported to stand at around 2.5x the company's turnover, which reached €131.8m with a €34-44m EBITDA in 2012.

Company
Founded in 1996 and headquartered in Milan, Doc Generici produces and distributes generic pharmaceutical products, primarily cardiovascular, gastrointestinal and neurological drugs and treatments. The company generated revenues of around €200m in 2018.

People
Mérieux Equity Partners – Benoît Chastaing (senior partner).
Intermediate Capital Group – Luigi Bartone (head of Italian subordinated debt & equity investments).
Doc Generici – Gualtiero Pasquarelli (CEO).

Advisers
Equity – Barclays (corporate finance); Studio Gattai Minoli Agostinelli (legal); Latham & Watkins (legal); White & Case (legal).
Vendor – Legance Studio Legale Associato (legal); Studio Facchini Rossi & Soci (tax).