Endo International plc (NASDAQ: ENDP) (TSX: ENL) today announced it has entered into a definitive agreement under which Endo will acquire Grupo Farmaceutico Somar ("Somar"), a leading privately-owned specialty pharmaceuticals company based in Mexico City, Mexico, for cash consideration. Endo expects the transaction to be immediately accretive to adjusted earnings per share.
"The acquisition of Somar is well-aligned with our goal of pursuing accretive acquisitions that enhance Endo's strategic positioning and diversifying our pharmaceutical business beyond the U.S. by accessing attractive emerging markets" said Rajiv De Silva, president and CEO of Endo. "The transaction provides Endo with a strong growth platform in Mexico that we believe can be further leveraged more broadly in Latin America, a proven sales team, and scalable manufacturing facilities. This acquisition allows us to fully benefit from the starting point that Paladin Labs established in Mexico. We look forward to leveraging Endo's global resources to take full advantage of Somar's robust pipeline, which currently includes over 60 products expected to launch over the next 3 years."
Jose Miguel Ramos R., chief executive officer of Somar, stated, "We are excited about the combination with Endo, joining a best-in-class global organization with access to valuable resources that will help us realize the full potential of our opportunities across branded, generic, and OTC pharmaceuticals in Mexico and Latin America more broadly. Our team is dedicated to developing and marketing new and effective treatments that improve patients' lives. I am confident that Endo's commitment to building sustainable businesses will be invaluable as we continue forward with our mission."
Somar is a leading pharmaceutical company focused on the development, manufacturing, marketing and commercialization of high-quality products across all key market segments in Mexico. Its portfolio targets Mexico's non-patented pharmaceutical market through 3 primary segments: Generics (private label and traditional generics, as well as products for government tender), Branded generics (dermatology and infectious disease platforms), and OTC (women's health and child care products). The Company generated approximately $100 million of revenue in 2013 and has approximately 1,200 employees.
The transaction is subject to customary conditions, including the receipt of applicable antitrust/competition approvals. It is expected to close in the third quarter of 2014.
Skadden, Arps, Slate, Meagher & Flom LLP and Creel, Garcia-Cuellar, Aiza y Enriquez, S.C. acted as advisors to Endo. Deutsche Bank Securities Inc.and Galicia Abogados, S.C.acted as advisors to Somar.