Recipharm to Acquire Mitim

Recipharm AB has announced that it has entered into an agreement to acquire Italian CDMO, Mitim Srl adding scale and capabilities to the group. Mitim is currently owned by a private Italian family and is specialised in the filling of injectable beta lactam products. It is located in Brescia close to Recipharm’s existing operations in Northern Italy. The transaction will complete tomorrow, 24th February 2016.

• Adds an important technology in the filling of injectable beta lactams with sales to the US and European markets.

• The transaction is valued to an Enterprise Value of EUR 68 million (SEK 640 million) equivalent to approximately 8 times pro forma 2015 EBITDA1.
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• Mitim had 2015 pro forma revenues of EUR 42.5 million1 which would have represented an increase of almost 12% on Recipharm’s total 2015 revenues.

• The acquisition will be accretive to both EBITDA margin and earnings per share from Q2 2016. Transaction costs of approximately SEK 4 million will be charged to Q1 results.

• Certain sellers will subscribe to a new issue of 1,039,724 RECI B shares valued at EUR 14 million and representing approximately 2% of the share capital.

Thomas Eldered, CEO Recipharm AB, commented: “This acquisition is very exciting for Recipharm and represents an important step in our consolidation of the CDMO industry. The transaction also cements our leading position in beta lactam production and provides Recipharm not only with additional scale but also opportunities to realise commercial and operational synergies as we combine it with our existing Italian business”.

Giorgio Bruno, CEO of Recipharm Italia S.p.A. added: “We very much look forward to welcoming our new colleagues in Mitim to the Recipharm group. I am confident with their help and experience; we will continue to grow the business from our now substantial Italian platform”.