Meda has entered into a definitive agreement to acquire Italian firm Rottapharm for a consideration of SEK 21.2 billion.
The consideration will comprise SEK 15.3 billion (€1.643 billion) in cash, 30 million Meda shares corresponding to a value of SEK 3.3 billion (€357 million) and a non-contingent deferred payment in January 2017 of SEK 2.6 billion (€275 million).
“The acquisition of Rottapharm is an important step in creating a stronger, improved Meda,” says Dr. Jörg-Thomas Dierks, CEO of Meda. “Rottapharm is a preeminent specialty pharma company with highly differentiated brands and a leading position within Cx. The combined business will have an improved Rx / Cx balance and increased investment opportunities. This acquisition is in-line with our strategic priorities to execute value-accretive M&A, invest in consumer healthcare and Emerging Markets. We are impressed by the business which the Rovati family has built up and we are honored to welcome the Rovati family as a major Meda shareholder.”
Rottapharm is owned by the Rovati family, which will own 9 percent of Meda following completion of the transaction. Rottapharm S.p.A. is headquartered in Monza, Italy in the early 1960’s and has developed into a consumer healthcare focused branded specialty pharma company. The company combines Rx-reimbursed medications with more traditional consumer healthcare products.