Charterhouse Capital Partners LLP ("Charterhouse") and CVC Capital Partners ("CVC") today announce that the Charterhouse Capital Partners IX fund has agreed the sale of DOC Generici ("DOC" or "the Company"), a leading generic pharmaceutical company in Italy, to funds advised by CVC. The transaction is subject to standard regulatory approvals and is expected to close during the summer of 2016. Financial details of the transaction have not been disclosed.
Founded in 1996, DOC is the largest independent generic pharmaceutical company in Italy, with a market share of over 15% and a portfolio of around 180 generic drug molecules, covering predominantly products in the retail market. The Company has a leading brand with a broad product portfolio and particular strength in cardiovascular and gastrointestinal & metabolic conditions. It operates an asset-light model, with a network of over 90 sales agents throughout Italy.
DOC was acquired by Charterhouse in a primary buyout in May 2013, backing the incumbent management team led by CEO Gualtiero Pasquarelli. Charterhouse has supported DOC in a number of initiatives, including diversification into the nutritional supplement sector; improving the supply chain; strengthening the executive and non-executive team; and developing brand awareness. The Company has grown significantly during Charterhouse's ownership, with EBITDA increasing by 36%.
Giuseppe Prestia, Partner at Charterhouse, said: "In DOC Generici we saw the chance to invest in a highly cash-generative, well-established business led by a best-in-class management team who have driven ongoing penetration of generics in the Italian pharmaceutical market. We are delighted to have contributed to the ongoing success of DOC and wish Gualtiero and his team the best of luck for the future."
Giampiero Mazza, Partner at CVC, added: "DOC Generici is a leader in the Italian generic pharmaceutical industry with strong positions in a wide range of therapeutic areas, a fantastic management team and an excellent brand. We believe there are significant opportunities to continue to grow the business, and we look forward to deploying CVC's local resources and global network to support management and employees of DOC in achieving their vision for the future."
Gualtiero Pasquarelli, CEO at DOC Generici, said: "We would like to thank Charterhouse for all their support over the last few years. DOC Generici has flourished under Charterhouse's ownership and their backing was instrumental in helping us accelerate our growth strategy. We now look forward to working with CVC in the next stage of our development."
Charterhouse was advised on the transaction by HSBC, Jefferies, Rothschild, Banca IMI, Chiomenti, LEK and PwC. CVC was advised on the transaction by Deutsche Bank (lead), Unicredit, Gattai, Minoli, Agostinelli, PwC, Bain & Co, Interpharma Link, and Studio Tributario Associato Facchini Rossi & Soci. Unicredit has also provided committed debt financing.