Abbott To Acquire Veropharm - Quick Facts

(RTTNews) - Abbott (ABT) announced a definitive agreement to acquire Veropharm.

Based on terms of the agreement, Abbott said it will acquire Limited Liability Company Garden Hills, the holding company that currently owns a controlling interest in Veropharm, for between 13.6 billion rubles and 17 billion rubles or a range of about $395 million to $495 million U.S. dollars depending on Garden Hills' share ownership of Veropharm at time of close.

The company noted that Garden Hills currently owns more than 80 percent of Veropharm but is expected to own more than 95 percent by the time the transaction closes.

Pursuant to the agreement, Abbott will also assume net debt of 4.7 billion rubles or approximately $136 million U.S. dollars.

Through this acquisition Abbott will obtain a portfolio of medicines that is well aligned with its current pharmaceutical therapeutic areas of focus in women's health, central nervous system, cardiovascular, and gastroenterology, while also adding an offering in the field of oncology.

Upon completion of the transaction, Abbott would also establish a manufacturing presence in Russia through its ownership of Veropharm's existing production facilities as well as a new state-of-the-art manufacturing facility that is currently under construction by Veropharm.