Information on the Target

Doppel Farmaceutici ('Doppel' or 'the Company') is a prominent Italian operator in pharmaceutical research, development, formulation, manufacturing, and packaging. The Company functions primarily as a Contract Development and Manufacturing Organization (CDMO), exclusively serving third-party clients. Established in 1994, Doppel has built a reputation for high-quality services, securing contracts with a variety of blue-chip Italian and international clients.

Doppel boasts a workforce of 460 employees and operates two manufacturing facilities located in Cortemaggiore and Rozzano, Northern Italy. The Company specializes in the production and packaging of various pharmaceutical products, including tablets, creams, injectables, and nutritional supplements. In addition, Doppel has expanded its portfolio to include food, nutraceutical, and cosmetic products and medical devices, with a significant shareholding in Procemsa Farmaceutici.

Industry Overview in Italy

The pharmaceutical industry in Italy has been on a steady upward trajectory, characterized by robust growth and innovation. With a GDP of approximately €1.9 trillion, Italy is one of the largest economies in Europe, and its pharmaceutical sector plays a vital role in its economy. The industry's growth is supported by strong research and development activities, with many firms investing heavily in new technologies and products.

Italy's CDMO sector, in particular, has seen a surge in demand due to increased outsourcing by pharmaceutical companies seeking to optimize costs and enhance operational efficiency. As global pharmaceutical firms focus on their core competencies, the role of CDMOs becomes even more critical, particularly in areas such as biologics and complex generics.

The growth of the CDMO segment is further fueled by the rising demand for personalized medicine and specialized treatments. Italian CDMOs are increasingly aligning their capabilities with these trends by investing in advanced technologies and enhancing their R&D offerings. This provides them with a competitive advantage in an evolving market.

Moreover, the Italian pharmaceutical market is embracing digital transformation, with many firms adopting innovative solutions to optimize processes and improve patient outcomes. This trend positions Italian manufacturers, including CDMOs, to capitalize on future growth opportunities.

The Rationale Behind the Deal

The acquisition of a 90% shareholding in Doppel by Trilantic Europe represents a strategic investment aligned with the anticipated growth of the CDMO sector over the next five years. By gaining a controlling interest in Doppel, Trilantic intends to leverage the Company's existing capabilities while expanding its footprint both nationally and internationally.

The deal also aims to enhance Doppel's strategic growth through the acquisition of new niche capabilities, particularly in injectable biotechnology medicines, and to implement greenfield projects that will bolster its position in the competitive landscape.

Information About the Investor

Trilantic Europe is a reputable private equity firm that focuses on control and co-control investments in mid-market companies across Western Europe. With approximately €1.5 billion in managed assets, the firm is well-positioned to support Doppel's growth strategy. Trilantic employs a 'buy in' rather than 'buy out' approach, prioritizing strong partnerships with family-owned businesses and management teams.

With a firm commitment to disciplined investing, Trilantic has established itself as a trusted partner in various sectors, including pharmaceuticals, consumer goods, healthcare, and industrials. The firm's successful track record underscores its ability to provide flexible capital solutions that drive operational improvements and long-term value creation for its portfolio companies.

View of Dealert

The acquisition of Doppel Farmaceutici by Trilantic Europe is viewed as a strategic and potentially lucrative investment. Given the projected growth of the CDMO sector, Trilantic's investment aligns well with market trends, positioning Doppel for expansion in both domestic and international arenas.

Doppel's established reputation and existing client base provide a solid foundation for further development. Additionally, the management team, led by the newly appointed CEO Giuseppe Cassisi, brings 30 years of industry experience, which is invaluable in navigating the competitive landscape and exploiting new market opportunities.

However, the success of this investment will depend on the effective execution of the proposed growth strategy, including the successful incorporation of new capabilities and technologies. If well-managed, the integration of these initiatives could significantly enhance Doppel's value and market presence.

Overall, the partnership between Trilantic Europe and Doppel appears promising, with potential for the creation of substantial shareholder value driven by market dynamics and strategic focus.

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