CVC picks banks to explore options for Italy's pharma group Recordati - sources
MILAN, May 8 (Reuters) -CVC Capital Partners has hired JP Morgan and Goldman Sachs to explore options for Italian pharmaceutical group Recordati RECI.MI, two sources close to the matter said on Wednesday.
The private equity firm, which owns a majority stake in Recordati, is considering all options, including a sale, a merger with another healthcare company or the creation of a so-called continuation fund, the sources told Reuters.
In the past CVC had already explored a combination between Recordati and another Italian peer but no agreement was reached, a third source added.
Last month CVC transferred Italian online university Multiversity from Fund VII, which controls Recordati, to a continuation fund. This is a new investment vehicle created by a private equity firm to transfer holdings of some existing investments.
The Recordati development was first reported by Italian newspaper Il Sole 24 Ore, adding that the process was at an early stage. CVC, JP Morgan and Goldman Sachs declined to comment.
CVC bought 51.8% of Recordati in a deal worth about 3 billion euros in 2018.
As of Wednesday, Recordati had a market capitalization of around 10.6 billion euros ($11.4 billion).
The group, which makes treatments for cardiovascular illnesses, urological, gastrointestinal diseases and rare diseases, posted revenues of 2.08 billion euros in 2023, with core earnings of 769.6 million euros.
($1 = 0.9308 euros)
Reporting by Elisa Anzolin
Editing by Giselda Vagnoni/Keith Weir
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