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ARTICLE | Company News

Meda to acquire Rottapharm

August 1, 2014 12:41 AM UTC

Specialty pharma company Meda AB (SSE:MEDAA) will acquire Rottapharm Madaus Group (Monza, Italy) for SEK21.2 billion ($3.1 billion) in a deal slated to close next quarter. The offer comprises SEK15.3 billion ($2.2 billion) in cash up front; 30 million Meda shares valued at SEK3.2 billion ($468.3 million) based on Meda's close of SEK106.40 on Wednesday, before the deal was announced; and a SEK2.6 billion ($381.4 million) non-contingent milestone payment in January 2017. Meda also will assume SEK2.8 billion ($410.8 million) in Rottapharm debt.

Meda markets specialty products along with OTC drugs and branded generics. Rottapharm markets OTC and unbranded consumer healthcare drugs. Meda said the combined company would have 2013 pro-forma revenues of about SEK18 billion ($2.6 billion). ...