Bankinter | Laboratorios Rovi (ROVI) is negotiating with the CVC fund the sale of its third-party manufacturing business. The valuation of 100% of this business could exceed €3,000 million. Antin, Cinven, KKR and Permira have dropped out of the bidding.
Opinion of Bankinter’s analysis team: Positive news that opens the possibility for Rovi to value its assets, the first glimpses of which we saw in March. Sales of the manufacturing business to third parties in H1 2024 accounted for 36% of the total.
Our valuation (Enterprise Value) of this business is €1,200m, a figure that is far from the more than €3,000m indicated and which is equivalent to 70% of Rovi’s enterprise value. Although the value is likely to be higher for an industrial investor than for a financial investor, the suggested valuation seems to us to be very high.
The main attractions of this division are (i) the agreements with Moderna and the expected start of production of its vaccine against Respiratory Syncytial Virus; (ii) the recently obtained FDA authorisation to market vaccines manufactured with mRNA technology in the United States; and (iii) the renewed interest in the manufacturing assets following Novo Nordisk’s takeover bid for Catalent.
