Advent International and Essex Woodlands fully exited Brazilian pharmaceutical company Biotoscana through a strategic sale to Canadian pharmaceutical company Knight Therapeutics. Advent and Essex Woodlands ‘s 51% stake was purchased for R$596m.
(Reuters) Knight Therapeutics (GUD.TO) will buy Brazilian pharmaceutical company Biotoscana Investments (GBIO33.SA) in a deal valued at 1.16 billion reais ($281 million) that will create a pharmaceutical platform in fast growing markets in Latin America.
In a securities filing on Monday, Knight said it will acquire a 51% interest in Biotoscana for 596 million reais ($144 million) from controlling shareholders Advent International and Essex Woodlands.
The Canadian company will pay 10.26 reais per share, with an implied 22% premium over 30-day average price of Biotoscana shares.
Knight will launch a mandatory tender offer to acquire the remaining 49% from public shareholders in similar terms.
Shares of Knight rose 5 percent in Toronto trading, while those of Biotoscana were up 5.4% at 10.26 reais in mid-morning trading in Sao Paulo.
Knight Chief Executive Jonathan Ross Goodman said in a statement the “transformational deal,” with Biotoscana’s focus on oncology and onco-hematology. The combined company will operate in 10 countries in the region, the statement said.
Talks between Biotoscana’s shareholders and Knight Therapeutics were reported earlier this month.