Teva buys Mexican pharmaceutical co Rimsa for $2.3b
Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) is acquiring Mexican pharmaceutical manufacturing and distribution company Representaciones e Investigaciones Médicas, S.A. de C.V. (Rimsa). The deal also includes a portfolio of products and companies, intellectual property, assets and pharmaceutical patents in Latin America and Europe in a debt-free, cash free set of transactions, for an aggregate $2.3 billion. Through this acquisition, Teva will become a leading pharmaceutical company in Mexico. Teva expects the deal will yield substantial and achievable synergies and offer a platform for growth in the region.
Teva president and CEO Erez Vigodman said, “This acquisition delivers on our strategy of increasing our presence in key emerging markets in order to position Teva for long-term growth in these markets. Rimsa will provide Teva with a significant platform for growth by combining the strong Rimsa brand, licensed portfolio of differentiated, patent-protected products, promising pipeline, significant relationships with physicians, patients and healthcare providers and its strong commercial presence. The combination of our companies lays the foundation for a leadership position and high long-term, profitable and sustainable growth in the region and further reinforces our commitment to innovation, quality and improving the health of people worldwide."
Rimsa had revenue in 2014 of $227 million with an annual growth, year over year of 10.6% since 2011. The company has an extensive portfolio of specialty products, including fixed-dose combination products which have fueled its growth. Rimsa’s well-established sales footprint is expected to provide a platform for additional Teva products.
Rimsa CEO Jorge Perez Juarez said, “For 45 years, Rimsa has operated as a leading pharmaceutical company in Mexico, the second largest healthcare market in Latin America, with a high growth, unique and diversified business model. We share Teva’s focus on providing quality healthcare and we are excited to become a part of Teva in meeting the needs of a population of 120 million."
Teva Global Generic Medicines president and CEO Siggi Olaffson said, “In addition to this unique portfolio of patent-protected products, Rimsa differentiates itself as a leading provider of branded specialty drugs, including fixed-dose combinations, which increase adherence and reduce overall costs to patients. We will build on their brand reputation, successful sales force model, well-established commercial footprint and loyal customer base to introduce additional specialty and generic Teva medicines to patients in Mexico and across the region.”
Teva expects to close these transactions by early first quarter, 2016. The acquisition is not expected to impact 2016 non-GAAP earnings and is expected to be accretive starting the first quarter of 2017. The transactions will be funded through a combination of cash on hand and lines of credit.
Citi acted as financial advisor to Teva, while Goldman Sachs acted as financial advisor to Rimsa.
Published by Globes [online], Israel business news - www.globes-online.com
Source: http://www.globes.co.il/en/
