Recipharm has signed an agreement to acquire Milan-based Corvette Pharmaceutical Services Group (Corvette) from Italian private equity group LBO Italia Investimenti for SEK 1.1 billion ($159 million).
Corvette, which had a 2013 revenue of SEK 499 million ($72 million), has three manufacturing facilities located in Northern Italy: Masate (a sterile injectable manufacturing facility); Paderno Dugnano (API and finished dose for development and manufacturing); and Lainate (bulk lyophilization).
Through the acquisition, Recipharm will gain access to geographical areas of interest including Italy and a number of emerging markets. The deal also provides Recipharm with an asset base in each of the five largest European pharmaceutical markets.
“The acquisition of Corvette is very much in line with our strategic plan and we are very excited to have secured such a high-quality company,” Thomas Eldered, CEO, said in a statement. “We will be gaining access to a first class and largely new customer base as well as new capabilities and capacities that will add to our technology base. Italy is an extremely interesting market made up of many small and mid-size companies where Recipharm currently has little presence. This combined with the significant sales in emerging markets represents an exciting opportunity. We are therefore looking forward to combining the assets of both organizations and working together with the management of Corvette to deliver benefit to all of our stakeholders.”
Earlier this month, Recipharm reported a strong first half of the year and announced its intention to “boost this positive growth through profitable acquisitions.”