ICG, Merieux Equity to exit DOC Generici to TPG

The investment is aimed at enhancing DOC Generici’s presence in Italy’s generic pharmaceutical market through organic and inorganic investments in the business, according to a press release.

The company received a pre-emptive bid that could be well above EUR 1bn from TPG in mid-June, Mergermarket reported earlier this month. A number of leading private equity firms and industry groups were also assessing the dossier.

Preliminary indications gave DOC Generici a valuation of around EUR 1.35bn- EUR 1.8bn based off a EUR 90m 2021 EBITDA, as reported.

As part of the transaction, Karthic Jayaraman, partner and co-head of healthcare practice at TPG, and Principal Ravi Umarji will join DOC Generici’s board of directors.

ICG originally invested in the company via its Europe VII Fund, which closed on EUR 4.5bn in November 2018 in April 2019, in partnership with Mérieux Equity Partners and DOC Generici's management team. The company then had an enterprise value of around EUR 1.1bn, as reported.

Mérieux invested capital from Mérieux Participations 3, which held a final close on EUR 377m in January 2020, surpassing its EUR 300m target and EUR 350m hard-cap. The vehicle focuses on growth equity investments, in support of small- to mid-cap companies in Western Europe and North America in health-related businesses interested in nutrition sector and food safety, according to Unquote Data.

Previous funding
CVC Capital Partners wholly acquired DOC Generici from Charterhouse Capital Partners via its CVC European Equity Partners VI fund. The business was valued at between EUR 650- EUR 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, as reported.

Company
Founded in 1996, DOC Generici is a generic pharmaceutical company based in Milan, Italy. The company markets a product portfolio of over 250 molecules and around 600 stock-keeping units (SKUs) covering all major therapeutic areas, with an emphasis in cardiovascular, GI, and neurological treatments. It supplies a well-diversified range of reimbursable and non-reimbursable products to wholesalers and pharmacies in all Italian regions.

People
DOC Generici − Riccardo Zagaria (CEO).
TPG Capital − Karthic Jayaraman (partner and co-head of healthcare practice); Todd Sisitsky (president and co-Managing partner); Ravi Umarji (principal).
ICG −Luigi Bartone (head of Italian subordinated debt & equity investments).

Advisers
Equity − Mediobanca, Morgan Stanley, Deutsche Bank (corporate finance); Latham & Watkins (legal).
DOC Generici − Barclay’s, BNP (corporate finance); Gattai (legal).

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• Topics
• Exits
• Buyouts
• Southern Europe
• Healthcare
• TPG Capital
• Italy
• Intermediate Capital Group PLC