Meda to acquire Rottapharm for around €3bn in cash and shares

Published: 1-Aug-2014

Expanding its business in consumer healthcare products and in emerging markets

Meda, a Swedish pharmaceutical manufacturer based in Solna, is to buy family-owned Italian pharmaceutical company Rottapharm for about €3bn in cash and stock.

Following completion of the deal in the fourth quarter the Rovati family will own 9% of Meda.

Rottapharm, headquartered in Monza, was founded by Professor Luigi Rovati in 1961 and has grown into a leading consumer healthcare-focused speciality pharma company. It operates under the name Rottapharm/Madaus and is expected to boost Meda's consumer healthcare business.

The company has a presence in 90 countries worldwide and generated revenue of €536m in 2013, with an adjusted EBITDA of €149m. Year-to-date trading as at 30 June showed sales growth excluding acquisitions of around 5%.

'The acquisition of Rottapharm is an important step in creating a stronger, improved Meda,' said Jörg-Thomas Dierks, CEO of Meda.

'This acquisition is in-line with our strategic priorities to execute value-accretive M&A, invest in consumer healthcare and emerging markets.'

Rottapharm's brands include Dona, a glucosamine sulfate for osteoarthritis with strong sales in emerging markets such as Russia, China and Thailand; Legalon, a prescription medicine used in the treatment of liver degenerative, inflammatory and fibrotic diseases; and anti-inflammatory gel Reparil.

Under the deal Meda will pay SEK15.3bn (€1.6bn in cash, 30 million Meda shares corresponding to a value of SEK 3.3bn (€357m). The deal also includes a deferred payment of SEK2.6bn (€275m) in January 2017.

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