Abbott announced a definitive agreement to acquire Latin American pharmaceutical company CFR Pharmaceuticals, more than doubling its Latin American branded generics pharma presence and further expanding Abbott’s presence in fast-growing markets. Under the terms of the agreement, Abbott will acquire the holding company that indirectly owns approximately 73 per cent of CFR Pharmaceuticals and will conduct a public cash tender offer for all of the outstanding shares of CFR. Assuming all publicly-held shares are tendered, the total purchase price would be approximately $2.9 billion, plus the assumption of net debt of approximately $430 million.
This acquisition immediately establishes Abbott among the top 10 pharma companies in Latin America, further broadening Abbott’s geographic presence across the region.
“With its scale and leadership positions in the region, strong commercial and development organisations, well-respected leadership team and a trusted portfolio of recognised brands, CFR is one of the leading branded generic companies in Latin America,” said Miles D White, Chairman and Chief Executive Officer, Abbott.
“This acquisition will significantly enhance and broaden Abbott’s Latin American footprint, and is well aligned with our long-term strategy and commitment to fast-growing markets.”
Abbott expects the acquisition to add approximately $900 million to its sales in the first full year (2015), with expected double-digit sales growth over the next several years.”
“We are pleased to join with Abbott to enhance CFR’s leadership across Latin America,” said Alejandro Weinstein, Chief Executive Officer, CFR Pharmaceuticals.
EP News Bureau – Mumbai