Advent International has agreed to purchase Mexican pharmaceutical company Grupo Farmacéutico SOMAR from Endo International for approximately US$124m. The transaction is expected to close in the second half of 2017, subject to customary conditions, including the approval of the Mexican Competition Commission.
(Press Release) Endo International plc (NASDAQ: ENDP) today announced it has entered into a definitive agreement to sell Mexico City based Grupo Farmacéutico SOMAR to Advent International for approximately US$124m subject to customary adjustments for cash, debt and working capital.
“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. Today, we are pleased to announce our agreement with Advent to divest SOMAR,” said Paul Campanelli, President and CEO of Endo. “SOMAR has a talented team and I want to thank them for the contributions they have made to our Company.”
“SOMAR is a leading player in the large, growing Mexican private generics market,” said Juan Pablo Zucchini, a Managing Partner and Head of the Latin American Healthcare practice at Advent International. “This investment aligns well with our healthcare sector focus in the region.” Enrique Pani, a Managing Director in Advent’s Mexico City office, added, “We look forward to working with SOMAR’s talented management team to continue growing all of the company’s business lines.”
The transaction is expected to close in the second half of 2017, subject to customary conditions, including the approval of the Mexican Competition Commission. Endo intends to classify the SOMAR assets and liabilities as held-for-sale in second-quarter 2017 and consequently expects to record an estimated pre-tax impairment charge of approximately $100 million, primarily impacting the carrying balances of goodwill and other intangible assets. Endo will finalize its analysis and record any required impairment charges in connection with its second-quarter 2017 financial reporting close