Acquisition fortifies position in European generics market.!--h2>
Teva Pharmaceutical is picking up ratiopharm for an enterprise value of €3.625 billion, or roughly $4.96 billion. The company is reportedly Germany’s second largest generics producer and the sixth largest generic drug firm worldwide.
Upon completion of the acquisition, expected by year-end, Teva says that it will realize synergies of at least $400 million within three years. The transaction will be earnings accretive within three quarters after closing, according to the firm.
“This transaction is perfectly aligned with our long-term strategy in which Europe is an important pillar and growth driver,” remarks Shlomo Yanai, Teva’s president and CEO. “ratiopharm will provide us with the ideal platform to strengthen our leadership position in key European markets, most notably in Germany, as well as rapidly growing generic markets such as Spain, Italy, and France.”
The acquisition will increase Teva’s sales from its European business from $3.3 billion in 2009 to joint pro forma sales of $5.2 billion. ratiopharm reported worldwide 2009 revenues of €1.6 billion, or approximately $2.19 billion. Its portfolio includes 500 molecules in over 10,000 presentation forms marketed in 26 countries. ratiopharm also has know-how in biosimilars, with a number of products in advanced stages of development.
The combined entity will have 40,000 employees worldwide, of which 18,000 will be based in Europe. The German headquarters site for the combined entity will be located in Ulm, ratiopharm's current headquarters.