Seeking to expand its branded generics business, Abbott has agreed to acquire the Latin American pharmaceutical company CFR Pharmaceuticals for approximately $2.9 billion, plus the assumption of net debt of approximately $430 million. 

Under the agreement, Abbott will acquire the holding company that indirectly owns approximately 73% 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. 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.

CFR Pharmaceuticals, headquartered in Santiago, Chile, participates in 15 Latin American markets and has a product portfolio that is well aligned with Abbott’s current pharmaceutical therapeutic areas of focus in women’s health, central nervous system, cardiovascular and respiratory diseases, according to Abbott. CFR currently markets more than 1000 products. It has more than 7,000 employees and has R&D and manufacturing facilities in Chile, Colombia, Peru, and Argentina.

Closing of the deal, which is subject to necessary regulatory approvals, is expected by the end of the third quarter of 2014.

Abbott focuses on branded generic pharmaceuticals, diagnostics, medical devices, and nutritionals. AbbVie, which was spun off as separate company on January 1, 2013, focuses on innovative pharmaceuticals/biopharmaceuticals.

Source: Abbott