CVC acquires Doc Generici from Charterhouse

Amedeo Goria
14 March 2016

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CVC Capital Partners has wholly acquired Italian pharmaceutical business Doc Generici from Charterhouse Capital Partners.

The deal saw CVC European Equity Partners VI wholly acquire the company. As part of the deal, Doc Generici CEO Gualtiero Pasquarelli will continue to lead the business. US buyout house Blackstone was also interested in the company, unquote" understands.

Details of the transaction remained undisclosed, but, according to press reports, the business has been valued at between €650-680m. Charterhouse scored a 2.7x money multiple (equating to a 40% IRR) following the sale.

Debt
Unicredit and HSBC provided debt financing to support the transaction.

Previous funding
In 2013, the Charterhouse Capital Partners IX fund bought Doc Generici 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.

The GP claims the business saw its EBITDA increase by 36% during the investment. According to a source familiar with the situation, the company's leverage ratio decreased from 3.7x at the time of Charterhouse's investment to 1x prior to the exit.

Company
Founded in 1996 and headquartered in Milan, Doc Generici produces generic pharmaceutical products. The business claims to have a 15% market share and a portfolio of 180 generic drug molecules, covering predominantly prescription products, with a particular focus on cardiovascular and gastrointestinal conditions.

According to a source familiar with the situation, the company generated a €168m turnover in 2015, with EBITDA amounting to €60m.

People
CVC Captial Partners – Giampiero Mazza (partner).
Charterhouse Captial Partners – Giuseppe Prestia (partner).
Doc Generici – Gualtiero Pasquarelli (CEO).

Adviser
Equity – Gattai Minoli Agostinelli & Partners (legal); Studio Tributario Associato Facchini Rossi & Soci (tax).