Business
Hikma acquires APM
Hikma acquires APM.
About this update from Hikma Pharmaceuticals Plc
[{"type":"text","content":"\n Hikma Pharmaceuticals Plc\n10 December 2007\n\n\n Hikma acquires APM to strengthen its leading position in MENA\n\n\nLONDON, 10 December 2007 - Following its announcement on 7 October 2007, Hikma\nPharmaceuticals PLC ('Hikma' or 'the Company') (LSE: HIK) (DIFX: HIK), the\nmultinational pharmaceuticals group, announces that its offer (the 'Offer') to\nacquire the entirety of Arab Pharmaceutical Manufacturing Company ('APM') (ASE:\nAPMC), for a cash consideration of JD116.0 million ($163.6 million), has been\naccepted by APM shareholders at an Extraordinary General Assembly held yesterday\nin Amman, Jordan.\n\n\nStrategic rationale\n\n\nThe acquisition of APM:\n\n • Enhances Hikma's leadership position in the fast growing MENA region,\n particularly in the key markets of Jordan and Saudi Arabia\n\n • Brings together high quality and complementary portfolios that can be\n distributed through the enlarged Hikma network\n\n • Adds an attractive range of in-licensed products, including Takeda's\n blockbuster diabetes drug, Actos(R)\n\n • Significantly enhances Hikma's product development pipeline\n\n • Strengthens Hikma as a licensing partner of choice in the MENA region,\n with a combined sales and marketing team of 1000 employees\n\n • Brings additional high quality manufacturing capacity with broad\n capabilities\n\n • Slightly accretive to earnings in 2008, on a cash EPS basis(1)\n\n\nHikma will finance the acquisition through new committed debt facilities\nalthough the Company also continues to review actively other financing options,\nincluding a potential equity issuance. The Company expects to assume control of\nAPM by the end of the year.\n\n\n\nSaid Darwazah, CEO of Hikma, commented:\n\n'The acquisition of APM further consolidates our strong position in the MENA\nregion and enhances our opportunities for growth across all of these markets. We\nsee clear opportunities for synergies through a complementary pipeline, an\nenlarged sales and marketing team and increased manufacturing scale. We are\ntremendously excited about the potential of this combination and I look forward\nto working with APM's experienced and successful team.'\n\n\nConsolidating Hikma's Jordanian market position(2)\n\nIn the first half of 2007, 27% of APM's sales were generated in Jordan, where it\nis the third largest pharmaceutical manufa...