Photo: Abbott Labs
U.S. pharmaceuticals and health care products giant Abbott Laboratories has reached a deal to acquire Chile’s CFR Pharmaceuticals for $2.9 billion, the two companies said Friday.
Under the agreement, Abbott will acquire the holding company that indirectly owns a 72.62 percent stake in CFR and also be required to submit a public offer for the Chilean company’s outstanding shares by Nov. 3 at the latest, CFR said in a regulatory filing.
If all publicly held shares are tendered, the total purchase price will be $2.9 billion and Abbott also will assume CFR’s net debt of approximately $430 million.
Abbott said in a press release that the acquisition broadens its geographic presence in Latin America and immediately establishes it as one of the 10 largest pharmaceutical companies in that region.
“With its scale and leadership positions in the region, strong commercial and development organizations, well-respected leadership team and a trusted portfolio of recognized brands, CFR is one of the leading branded generic companies in Latin America,” Abbott Chairman and CEO Miles D. White said.
The Illinois-based company said it expects the acquisition will add some $900 million to its sales in 2015.
“We are pleased to join with Abbott to enhance CFR’s leadership across Latin America,” CFR’s chief executive officer, Alejandro Weinstein, said in the same release.
CFR has operations in 15 countries with a focus on Chile, Peru, Argentina and Colombia. The company specializes in the research, development, production and sale of branded specialty pharmaceutical products and complex injectables.