MILAN (Reuters) -Italy’s Agnelli family will invest 833 million euros ($865 million) through its Exor holding company to buy a 10% stake in French privately-held healthcare group Institut Merieux, the companies said in a joint statement on Friday.
The deal marks the first major international move into the healthcare business for Exor, which will soon have 9 billion euros ($9.6 billion) to invest after it completes the sale of Bermuda-based reinsurer Partner Re, expected to be finalised soon.
CEO John Elkann, the scion of the Agnelli family, has said Exor’s new investments would focus on the healthcare, technology and luxury sectors. In luxury, Exor already owns 24% in high-end shoemaker Louboutin and is the largest shareholder in Chinese group Shang Xia.
“For us, this is a unique opportunity to enter the healthcare sector with a strong partner with whom we share the same values and long-term horizon,” Elkann said in the statement.
Exor will acquire the stake in through a reserved capital increase, the companies said in the statement
Founded 125 years ago, Institut Merieux employs over 21,000 people, with a turnover of 4 billion euros. It controls five companies in different healthcare businesses, including Paris-listed bioMerieux, whose market cap tops 11 billion euros.
The deal, which values Institut Merieux at over 8 billion euros, is expected to be completed during the summer. Exor will pay one third of the agreed amount at the closing of the deal and the remainder within the following 12 months.
Elkann and Exor partner Benoit Ribadeau Dumas will join Institut Merieux’s board.
Exor – which is the single largest shareholder in carmaker Stellantis and has controlling stakes in companies including sports car maker Ferrari and Serie A soccer team Juventus – earlier this year bought a 45% stake in Italy’s Lifenet Healthcare for 67 million euros.
($1 = 0.9625 euros)
(Reporting by Giulio Piovaccari, editing by Giulia Segreti)
