On Friday morning it was announced that Abbott Labs (ABT) had made a definitive agreement to acquire CFR Pharmaceuticals, a Latin American pharmaceutical company.
The acquisition will more than double Abbott’s Latin American branded generics presence. Abbott Labs will be acquiring the holding company that owns 73% of CFR, and will conduct a public cash tender offer for the remaining shares of the company. If all publicly traded shares are bought, the deal will be worth $2.9 billion, plus the assumption of approximately $430 million in net debt. Abbott expects to add $900 million in sales in the first full year after acquisition, and expects double-digit sales growth in the years following.
Abbott chairman and CEO Miles D. White had the following comments about the acquisition: “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. 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.”
For more on pharmaceutical companies, check out: How Much Dividend-Paying Drug Makers Spend on Research and Development
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