Date: 2015-10-01
Type of information: Company acquisition
Acquired company: Rimsa - Representaciones e Investigaciones Médicas (Mexico)
Acquiring company: Teva Pharmaceutical Industries (Israel)
Amount: $2.3 billion
Terms: * On March 3, 2016, Teva Pharmaceutical Industries announced that it has successfully completed the acquisition of Rimsa, a leading pharmaceutical manufacturing and distribution company in Mexico , together with a portfolio of products and companies, intellectual property, assets and pharmaceutical patents in Latin America and Europe in a set of transactions for an aggregate of $2.3 billion . With the completion of the acquisition, Teva is now one of the leading pharmaceutical companies in Mexico , the second largest market in Latin America and one of the top five emerging markets globally. * On October 1, 2015, Teva Pharmaceutical Industries announced that it has entered into definitive agreements under which the Company will acquire Representaciones e Investigaciones Médicas, S.A. de C.V. (Rimsa), a leading pharmaceutical manufacturing and distribution company in Mexico , along with a portfolio of products and companies, intellectual property, assets and pharmaceutical patents in Latin America and Europe in a debt-free, cash free set of transactions, for an aggregate of $2.3 billion . The acquisition was unanimously approved by Teva's Board of Directors, led by the Chairman, Prof. Yitzhak Peterburg . Teva expects to close these transactions by early first quarter, 2016. The acquisition is not expected to impact 2016 non-GAAP earnings and is expected to be accretive starting Q1 2017. The transactions will be funded through a combination of cash on hand and lines of credit. Citi acted as financial advisor to Teva. Goldman Sachs acted as financial advisor to Rimsa.
Details: Through this acquisition, Teva will become a leading pharmaceutical company in Mexico , the second largest market in Latin America and one of the top five emerging markets globally. Teva expects the deal will yield substantial and achievable synergies and offer a platform for growth in the region. Rimsa had revenue in 2014 of $227 million with an annual growth, year over year of 10.6% since 2011. The company has an extensive portfolio of specialty products, including fixed-dose combination products which have fueled its growth. Rimsa's well-established sales footprint is expected to provide a platform for additional Teva products.
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