Boston, MA 06/06/2014 (wallstreetpr) – There has been an upsurge in Mergers and Acquisitions in the Pharmaceutical and Healthcare Industry in recent times. The latest in the list the takeover of CFR Pharma by Abbott Laboratories (NYSE:ABT). The transaction amounts to $2.9 billion and it will help Abbott in expanding its business in growing markets of Latin America.
About CFR:
CFR Pharma is a pharmaceutical company based in Chile. It is one of the largest pharmaceutical companies in Latin America and is engaged in the development, manufacturing and selling of medical drugs in 15 countries of Latin America. It has more than 1000 products dealing with women’s health, cardiovascular and respiratory diseases and central nervous system which are similar to the business interests of Abbott. With more than 7000 employees on board, it conducts research and development and manufacturing activities in Peru, Argentina, Chile and Colombia
Abbott’s Gains:
With this deal,Abbott Laboratories (NYSE:ABT) will gain access to the Latin America business. The pharmaceutical business is aiming to reach $73 billion in the Latin America by the year end, and it is projected that it might touch $124 billion by the year 2018.
Miles. D. White, the CEO of Abbott laboratories said that, “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,”
The Deal:
Abbott shall claim a stake in the holding company that holds around 73% stake in the Chilean Pharma company. It will offer cash for all the outstanding shares of CFR. It is also required to assume the debt portion of CFR that is estimated at $430 million.
The deal will add a whopping $900 million to total sales of Abbott in the year 2015. It shall also keep on adding double digit growth in the coming years.
The acquisition that will add a boost to Abbott Laboratories (NYSE:ABT)’s generic business is expected to be completed by end of the third quarter in this year.
