Company sets stage to expand global footprint with big ticket buy
OAKVILLE, Ont.—Another Canadian pharmaceutical company is eyeing global growth.
Concordia Healthcare Corp. has announced it will acquire Amdipharm Mercury Ltd. from Cinven for approximately US$3.5 billion. UK-based AMCo is an international specialty medicine company with patients in more than 100 countries.
The deal will be a combination of cash, Concordia common shares and performance-based earn-outs payable in cash.
“This acquisition is a key milestone and pivotal turning point in Concordia’s strategy, which gives us the platform to take our business to the next level,” Mark Thompson, Concordia’s chairman and CEO, said. “We are not only acquiring products and commercial infrastructure, but a seasoned management team who has done a fantastic job of building a solid and successful international pharma operation.”
“The combination of our highly complementary yet geographically diverse businesses is truly transformational. It will uniquely position the combined company as a leading, international pharmaceutical company with extensive geographic reach, a diversified and attractive product portfolio, and an asset-light business model that we expect will allow us to focus investments and resources on further growing our business,” he added.
Concordia expects the transaction to transform the company’s growth platform, allowing it to drive organic growth across its pharmaceutical lineup and greatly enhance its M&A strategy though global opportunities.
“AMCo has a strong international footprint with sales in more than 100 countries, and is anticipated to serve as a platform for further expansion by the company on a global scale,” Concordia said.
The deal follows Concordia’s $1.2 billion Covis Pharma acquisition earlier this year.