Last month, names like Sanofi ($SNY), Pfizer ($PFE), Abbott ($ABT) and Takeda were flying around as potential suitors for Mexico-based Representaciones e Investigaciones Medicas, aka Rimsa. With the move, Teva said it also will become a leading pharmaceutical company in Mexico, a key emerging market. “The combination of our companies lays the foundation for a leadership position and high long-term, profitable and sustainable growth in the region and further reinforces our commitment to innovation, quality and improving the health of people worldwide”.
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The Israeli pharma will shell out $2.3 billion for the generics maker, which pulled in $227 million in 2014 and has recorded annual growth of 10.6% since 2011.
“(Rimsa) provides Teva a much-needed platform to advance its own portfolio into the large and growing speciality market. Rimsa will bring a portfolio of specialty products that are protected by patents.
Siggi Olafsson, CEO of Teva’s global generic business, said the company would build on Rimsa’s reputation, sales force and customer base to introduce additional speciality and generic Teva medicines to patients in Mexico and across the region.
The deal, funded with cash on hand and lines of credit, should close in Q1.
The transaction was expected to complete in the early part of 2016 and to contribute to Teva´s earnings starting from the first quarter of 2017.
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Goldman Sachs acted as financial adviser to the North American outfit in the sale.
