Jordan's Hikma Pharmaceuticals has hit the acquisition trail again and announced plans to buy Morocco's Promopharm.
Hikma is initially buying a 63.9% stake in Promopharm for $111.2 million and will then launch a mandatory tender offer for the rest of the shares in Morocco's ninth largest manufacturer of pharmaceuticals. It currently has a 3.5% market share and generated revenues of $44.7 million and earnings before interest, taxes, depreciation, and amortisation (EBITDA ) of $13.2 million in 2010.
Promopharm, which has a workforce of over 300 employees (including a sales and marketing team of around 135), is expected to deliver double-digit revenue and EBITDA growth for the full year. It has a portfolio of around 200 branded generic and in-licensed products across a broad range of therapeutic areas.
Hikma, which is listed in London, says it has already identified over 20 of its own anti-infective, CNS, cardiovascular and diabetes products for distribution in the Moroccan market. Chief executive Said Darwazah said entering the Moroccan market "has been a strategic priority for Hikma for some time and we are delighted to have acquired a company that offers such an excellent fit".
He added that "establishing ourselves as a local manufacturer in Morocco completes our Middle East and North Africa region (MENA) footprint and strengthens our leading position in the region". Mr Darwazah concluded by saying "we will continue to pursue further value enhancing opportunities across our operations.”