Abbott acquires CFR Pharmaceuticals in deal worth $3.3 billion

ABBOTT PARK, Ill. — Abbott on Friday announced a definitive agreement to acquire Latin American pharmaceutical company CFR Pharmaceuticals, more than doubling its Latin American branded generics pharmaceutical presence the company reported. 

Under the terms of the agreement, Abbott will acquire the holding company that indirectly owns approximately 73% of CFR Pharmaceuticals and will conduct a public cash tender offer for all of the outstanding shares of CFR. Assuming all publicly-held shares are tendered, the total purchase price would be approximately $2.9 billion, plus the assumption of net debt of approximately $430 million.

This acquisition immediately establishes Abbott among the top 10 pharmaceutical companies in Latin America, further broadening Abbott's geographic presence across the region, the company stated.

"With its scale and leadership positions in the region, strong commercial and development organizations, well-respected leadership team and a trusted portfolio of recognized brands, CFR is one of the leading branded generic companies in Latin America," stated Miles White, chairman and CEO Abbott. "This acquisition will significantly enhance and broaden Abbott's Latin American footprint, and is well aligned with our long-term strategy and commitment to fast-growing markets."

Abbott expects the acquisition to add approximately $900 million to its sales in the first full year (2015), with expected double-digit sales growth over the next several years.

CFR Pharmaceuticals, headquartered in Santiago, Chile, participates in 15 Latin American markets and has a product portfolio that is well aligned with Abbott's current pharmaceutical therapeutic areas of focus in women's health, central nervous system, cardiovascular and respiratory diseases, the company noted. 

CFR currently markets more than 1,000 products.

The Latin American pharmaceutical market is expected to reach $73 billion in sales this year, and is expected to reach $124 billion by 2018, with estimated annual growth rates of two to three times that of developed markets over the coming years, according to IMS forecasts.