Abbott completes Solvay Pharmaceuticals acquisition

16 February 2010 12:32  [Source: ICIS news]

LONDON (ICIS news)--Solvay has completed the sale of its pharmaceuticals business to US-based Abbott for a total of €5.2bn ($7.1bn), the Belgian producer said on Tuesday.

This includes an initial cash payment of €4.5bn and payments of up to €300m if certain sales milestones are achieved from 2011-2013. It also includes the assumption of certain liabilities and sale price adjustments, valued at around €360m.

"The acquisition of Solvay Pharmaceuticals is a key part of Abbott's strategy to bolster our presence in key markets and deliver sustainable, industry-leading growth," said Miles D White, Abbott’s chairman and CEO.

"In addition to taking both Abbott and Solvay products into new and expanding markets, the acquisition enhances our R&D investment, providing Abbott with the opportunity to drive future pharmaceutical growth," said White.

Abbott expects the acquisition to add approximately $2.9bn to its total reported sales for 2010, and add some $500m to its annual pharmaceutical R&D investment.

CEO of Solvay Pharmaceuticals, Werner Cautreels, will adopt a transitional role before leaving the company.

Solvay said it would now refocus its activities on accelerating its growth strategy. It planned to reinvest the proceeds in expansion in growth regions, and the development of new products with a low energy footprint and which help to reduce the cyclicality in the company’s portfolio. 

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By: Andy Brice
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