Arcadia exits Lisapharma to trade

Alessia Argentieri
01 July 2019

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Italian private equity firm Arcadia has sold pharmaceutical business Lisapharma to China-based biopharmaceutical company Shandong Sito Bio-technology.

The Chinese company bought an 80% stake in Lisapharma from five investors, including Arcadia and Azimut Libera Impresa, for €8.8m.

In addition, Shandong Sito Bio-technology will make an investment of €2m in Lisapharma via a capital increase, after which it will hold an 83.08% stake.

Lisapharma was a portfolio company of Arcadia's maiden fund, Arcadia Small Cap I, which is now fully invested. The GP is currently deploying capital from Arcadia Small Cap II, which has recently held a final close on €80m. The fund was originally launched with a €100m target in September 2016, held a €47m first close in October 2017 and a €63m second closing in December 2017. It acquires majority stakes in companies with revenues of between €10-50m, mainly based in northern Italy.

Previous funding
Arcadia, alongside Italian private equity house Futurimpresa, acquired Lisapharma from the Zagnoli family in an all-equity deal inked in July 2015.

Arcadia bought a 53.7% stake, with capital drawn from its €53m fund Arcadia Small Cap I, while Futurimpresa acquired a 44.3% holding, investing via its €70m vehicle Finanza e Sviluppo Impresa. Lisapharma president Giovanni Franchi and CEO Massimiliano Del Frate also took part in the deal, acquiring the remaining 2% stake.

Subsequently, asset management firm Azimut bought private equity fund manager Futurimpresa in 2017, acquiring its vehicle Finanza e Sviluppo Impresa, which controlled a stake in Lisapharma.

Company
Founded in 1925 and headquartered in Erba, near Como, Lisapharma is a pharmaceutical company that specialises in producing injectables, including antibacterial, antibiotic and antiulcer drugs, vitamins and steroids. Its products are sold under its own brand name and on a third-party contract basis, and distributed in 40 countries worldwide. The business generates a turnover of around €17m, of which 80% comes from outside Italy.

People
Arcadia – Simone Arnaboldi (CEO).