CFR makes a non-binding offer to acquire Adcock Ingram


Deal would allow Chilean pharmaceutical firm to expand into Africa, South East Asia and India

CFR Pharmaceuticals (CFR), a Santiago, Chile-based pharmaceuticals company, has put in a non-binding offer to acquire the entire share capital of South African healthcare firm Adcock Ingram for ZAR73.51 (US$7.29; €5.62) per share to be paid for in both cash and shares.

The deal would create a company with annual revenue of about US$1.3bn. It would have a presence in more than 23 countries and employ more than 10,000 people.

Alejandro Weinstein, Chief Executive of CFR, said the deal would allow the company to become ‘one of the most diversified and uniquely positioned emerging markets multinationals’ with exposure to ‘billions of patients across Latin America, Africa, South East Asia and India’ and capitalise on ‘attractive emerging market opportunities’.

The deal would allow the Chilean company to enter Africa’s expanding markets, such as the sub-Saharan region, where Adcock sells over-the-counter drugs and antiretrovirals.

The combined company would also improve manufacturing efficiencies by shifting production of certain products to Adcock Ingram’s excess manufacturing capacity in South Africa.

The deal will allow CFR to capitalise on attractive emerging market opportunities

‘The proposed transaction makes compelling commercial sense for shareholders, patients and employees who can now secure the benefits from the optimisation of operational synergies and new technology of the two companies to reduce costs and enhance the range of products currently being offered to customers from an unrivalled pipeline,’ said Weinstein.

‘A combination of CFR and Adcock Ingram could unlock significant value through complementary product portfolios, business structures, geographical presence and manufacturing footprints.’

The transaction is also expected to enable both companies to combine their API sourcing and realise additional efficiencies.

CFR said it had no plans to cut jobs at Adcock Ingram, which has 18 manufacturing facilities, and in fact the combined company is likely to employ more people.

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‘CFR is excited at the prospect of working together with Adcock Ingram’s existing team to maximise the growth potential of the new organisation and enhance opportunities for all stakeholders of both companies,’ concluded Weinstein.