Over three billion euros is the estimated valuation for the upcoming auction of Hippocrates Holding, whose sale, expected by the end of 2026, marks the culmination of a dizzying growth that began just a few years ago. The divestment process of the leading Italian pharmacy group will attract the attention of major international funds, ready to compete for an asset that has transformed a historically fragmented market into a structured industrial network.
THE DEAL OF THE YEAR IN ITALIAN PRIVATE EQUITY
The sales process, wrote a few days ago Il Sole 24 Ore, will enter the operational phase in September with the finalization of the informational materials, while non-binding offers are expected in October. The enterprise value valuation of about 3 billion euros, states the financial daily, includes 1.2 billion euros in bank financing and is based on a multiple of about 13-14 times the expected EBITDA for 2025, estimated between 220 and 230 million euros.
Among the parties interested in the acquisition are the funds PAI Partners, KKR, EQT, Partners Group, Permira, CVC Capital Partners, and TDR Capital. The industrial group Dr. Max, controlled by the Czech group Penta and already active in the Italian market with 300 outlets, is also analyzing the dossier, although it seems less likely since it recently completed the acquisition of Farmacie Italiane from F2i.
HOW HIPPOCRATES HOLDING WAS BORN
As Milano Finanza reported last year, the story of Hippocrates Holding began in 2017 when Davide Tavaniello and Rodolfo Guarino, then young professionals in the banking sector at UBS, decided to bet on the opportunities offered by the liberalization of the pharmacy sector in Italy.
Officially founded in May 2018, the company took its first steps thanks to a capital increase of 53 million euros subscribed by important families of Italian entrepreneurship, including Barilla, Benetton, Marzotto, and Recordati. The initial goal was to create the first national retail pharmaceutical operator that was socially responsible, capable of combining the economies of scale typical of large foreign groups with the peculiarities of the Italian territorial health system.
A decisive turning point occurred in 2021 with the entry of the French fund Antin Infrastructure Partners, which acquired 80% of the capital, providing the resources necessary for accelerated expansion through a steady flow of acquisitions.
WHO IS AT THE HELM
The leadership of the group is entrusted to the same co-founders, with Tavaniello as chairman and CEO and Guarino as CEO.
The managerial structure is completed by an executive committee that includes Alessandro Rovelli for commercial direction, Bruno Camaiora for medical retail, and Alberto Oteri for retail direction. Financial management is in the hands of CFO Marco Branchini, while human resources are directed by Francesca Gazza and the technology area by Iacopo Iacopini. Currently, Hippocrates counts over 3,200 employees, of whom about 2,000 are professional pharmacists engaged in various outlets distributed across the territory.
THE NUMBERS OF HIPPOCRATES
The group has reached considerable size, with a network that, according to Corriere, today counts about 629 pharmacies and total revenues approaching one billion euros.
From last year’s financial statement, it emerges that the production value in 2024 was 35,487,074 euros, up from 28,373,100 euros recorded in 2023. At the same time, production costs for the 2024 financial year amounted to 46,454,887 euros, compared to 45,976,433 euros the previous year.
The final result of the financial year showed a loss of 59,779,923 euros for 2024, while in 2023 the balance closed with a loss of 49,219,568 euros.
THE ITALIAN MARKET AND THE PHARMACY RISIKO
The sale of Hippocrates takes place in a context of strong consolidation in an Italian market characterized by about 20,000 outlets still very fragmented. In Italy, Mf wrote last year, there is one pharmacy for every 2,950 people, a number higher than the European average that pushes investors to seek efficiencies through the creation of large networks, transforming the pharmacy from a simple drug dispenser to an integrated territorial health facility, capable of offering additional services, diagnostics, and products related to wellness and cosmetics.
