LBO Italia sells Corvette to Recipharm

The €100m equity consideration will be paid for 50:50 in cash and a convertible bond.

The deal extends Recipharm's international presence to include Italy and several emerging markets. It also gives Recipharm a significantly larger intellectual property base and strengthens its reach in lyophilisation. Based on 2013 pro forma financials, the combined entity's revenues and EBITDA would have been SEK 2.6bn and SEK 408m respectively.

Recipharm is a listed contract development and manufacturing organisation. The company has production facilities across Europe and supplies products in various dosage forms including solid dose, semi-solids, steriles (liquids and freeze dried), beta-lactams, hormones, dry powder inhalers and granulates. Recipharm was founded in 1995.

Previous funding
LBO Italia acquired Corvette in 2009, when the firm had a turnover of €27.1m.

Company
Corvette Pharmaceutical Services Group is the parent company of several businesses that provide products and services to the pharma industry. Services include commercial strategy and development, quality control, regulation compliance, administration, finance and general business management.

In 2013, the business had revenues and EBITDA of €55.7m and €15m respectively, giving an EBITDA margin of 26% and operating profit of €11.4m. The business has three manufacturing facilities in northern Italy and employs 265 staff. The firm's 100-strong customer base includes large- and mid-size pharma companies as well as global businesses.

People
Giovanni Paglia is president of LBO Italia.

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