$900m Sigma Aspen deal
August 16, 2010
SIGMA Pharmaceuticals this
morning confirmed the sale of its
Pharmaceutical Division to South
African firm Aspen Pharmacare
(PD breaking news).
The $900m Sigma receives in the
deal will enable it to pay off debt,
with the sale including Sigma’s
Generics, Consumer, OTC, Herron,
Ethical Products, Medical Products,
Orphan and Manufacturing
businesses.
Sigma will retain its wholesaling
and distribution operations, and will
retain a long term preferred
supplier status with the businesses
being sold to Aspen.
Sigma chairman Brian Jamieson
said: “Over recent months, the
Board has carefully considered a
number of expressions of interest in
relation to the whole of Sigma’s
business and parts of the Group.
“The Board has concluded that
Aspen’s proposal to acquire the
Pharmaceuticals Division is the best
alternative for Sigma shareholders.”
Sigma’s shareholders will be
asked to approve the deal, and
other conditions include receiving
regulatory and lender approval.
Under the proposed terms Sigma
will agree not to compete with the
Pharmaceuticals Division for a
period of two years.
The companies said the agreed
terms are “non-binding and subject
to formal documentation” and
Sigma has agreed to deal
exclusively with Aspen until 15 Oct.
Sigma will retain its Healthcare
Division which includes the
wholesale and retail operations,
with Jamieson saying the company
“will emerge after the sale in a
financially powerful position for future
growth and business improvement”.
Directors said that they will
recommend shareholders vote in
favour of the sale, and if the
transaction doesn’t proceed for
reasons relating to Sigma, Aspen
will be entitled to a $4.5m break fee.
The proposed sale includes a
condition that Aspen will support
Sigma’s existing pharmacy sales
programs as well as providing
contract manufacturing services,
while Sigma will agree to provide
wholesaling, distribution, IT and
logistics services to the businesses
being sold.
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