Charterhouse sells Italian drugs firm Doc Generici to CVC

(Adds companies' confirmation, detail on deal)

LONDON, March 11 (Reuters) - Private equity (LSE: 0QLS.L - news) house Charterhouse is to sell Italian generic drugs firm Doc Generici to fellow buyout firm CVC (Taiwan OTC: 4744.TWO - news) , the companies said on Friday.

The terms of the deal were not disclosed. Reuters previously reported that the supplier of cardiovascular, cancer and other drugs could be valued at between 650 million euros ($725.08 million) and 700 million euros.

Founded in 1996, Doc Generici is the largest independent generic pharmaceutical company in Italy, with a market share of over 15 percent.

Reuters reported in December last year that CVC as well as Blackstone (NYSE: BX - news) were among investment firms looking to participate in an auction for the Milan-based group, hoping to take advantage of a wave of patent expiries in Italy in 2017.

Charterhouse is set to realise an internal rate of return of around 40 percent, or 2.7 times the money it invested, one source familiar with the matter said.

It (Other OTC: ITGL - news) is the eighth exit from the buyout firm's ninth fund, which also included investments in UK retailer Card Factory (LSE: CARD.L - news) and skincare firm Deb Group.

Since Charterhouse's 2013 acquisition Doc Generici's core earnings have increased by 36 percent to reach 60 million euros in 2015, the source said.

Charterhouse is being advised by HSBC, as well as Rothschild and Banca IMI, while CVC is being advised by Deutsche Bank (LSE: 0H7D.L - news) and Unicredit (EUREX: DE000A163206.EX - news) .

($1 = 0.8965 euros) (Reporting by Freya Berry; Editing by Alexander Smith and Jane Merriman)