Financial Advisor of TEXAS PACIFIC GROUP in the majority investment in DOC GENERICI
On June 30th 2022, Texas Pacific Group (“TPG”), the private equity platform of global alternative asset management firm TPG, announced that it has signed a definitive agreement to acquire a majority interest in Diocle Topco S.àr.l., parent of DOC Generici, a leading manufacturer of generic pharmaceuticals in Italy, from ICG and Merieux Equity Partners.
Founded in 1966, DOC Generici is the largest independent Italian generic pharmaceutical company and is the second-largest player overall in the Italian generic pharmaceutical market. The company is based in Milan and combined experience with specialization to market a broad an expanding product portfolio with a strong presence in cardiovascular, GI, and neurological treatments. DOC’s portfolio has over 250 molecules and around 600 SKUs covering all major therapeutic areas. DOC supplies a well-diversified range of reimbursable and non-reimbursable products to wholesalers and pharmacies in all Italian regions.
TPG is a leading global alternative asset management firm founded in San Francisco in 1992 with $ 120 billion of asset under management and investment and operational teams in 12 offices globally. TPG invests across five multi-product platforms: Capital, Growth, Impact, Real Estate and Market Solutions.
Mediobanca advised TPG on the pre-emptive bid during phase 1 of the process and supported them throughout the whole bilateral negotiation. Transaction value is undisclosed (estimated in the press at EUR 1.5 bn) and closing of the transaction is subject to the satisfaction of customary regulatory conditions.
This transaction represents the largest private equity LBO in Italy in 2022YTD and demonstrates the need to tap the private debt markets (as opposed to banks underwriting) to execute leveraged transactions in the current environment.
The investment marks the re-entering of TPG in the Italian market and positions Mediobanca for future activity with them.
This transaction demonstrates Mediobanca’s ability to originate and execute large private equity transactions.