OR WAIT 15 SECS
Through two acquisitions, Recipharm will acquire Kemwell’s United States, Swedish, and Indian operations.
Recipharm AB announced on April 18, 2016 that it has signed two separate agreements to acquire Kemwell’s pharmaceutical CDMO businesses. According to Recipharm, the first acquisition, comprising US and Swedish operations, is expected to close during the second quarter 2016, after review by the Swedish Competition Authority. The second acquisition, comprising operations in India, is conditional on governmental approvals and expected to close before the end of 2016.
The businesses Recipharm will acquire had 2015 preliminary net sales of approximately SEK 745 million (91.66 million USD), corresponding to 22% of Recipharm’s 2015 total net sales, the company said in a press announcement.
The acquisition price for Kemwell’s operations in the US and Sweden amounts to approximately $85 million on a cash and debt free basis. The acquisition price for the operations in India amounts to $120 million on a cash and debt free basis.
The purchase price will be financed through the proposed share issue of approximately SEK 850 million ($104.65 million). The agreement also includes a right of first negotiation to acquire Kemwell’s Indian biopharma business, which is not included in the transaction and will continue to be retained by the sellers. The transaction is subject to governmental approvals, including approval from the Indian Foreign Investment Promotion Board.