Endo to divest Mexican generics arm Grupo Farmcéutico SOMAR

DUBLIN — Endo will be selling its Mexico City-based Grupo Farmcéuitco SOMAR division to Advent International, the company announced Wednesday. The deal will see the Mexican private generics leader sold to Advent for roughly $124 million.

"Earlier this year, we disclosed our intention to divest non-core assets, including SOMAR, in order to re-direct our resources to our core areas of growth,” Endo president and CEO Paul Campanelli said. “Today, we are pleased to announce our agreement with Advent to divest SOMAR. SOMAR has a talented team and I want to thank them for the contributions they have made to our company.”

The companies expect the transaction to close in the second half of 2017. Endo said that it expects an estimated pre-tax impairment charge of $100 million as a result of classifying SOMAR’s assets and liabilities as held-for-sale in the second quarter of 2017.

“This investment aligns well with our healthcare sector focus in the region,” Advent managing partner and head of Latin American healthcare practice Juan Pablo Zucchini said. 

Advent’s Mexico City office managing director Enrique Pani said, “We look forward to working with SOMAR's talented management team to continue growing all of the company's business lines.”