Abbott Labs (ABT), which discovers, develops, manufactures and sells health care products, was moving higher in late Monday trading and the medical-devices company tonight announcing a deal to acquire the corporate parent of Russian drugmaker Veropharm for between $395 million to $495 million in cash.
Limited Liability Company Garden Hills currently owns about 80% of Veropharm – worth about 13.6 billion rubles – although that stake is expected to grow over 95%, or as much as 17 billion rubles, by the time ABT’s acquisition of Garden Hills closes. Under the purchase agreement, ABT also will assume about $136 million of Veropharm debt.
The deal is scheduled to close during the final three months of this year and ABT anticipates the transaction will increase its fiscal 2015 revenue by around $150 million. The company plans to fund the purchase using available balance-sheet cash.
Abbott Laboratories’s products include branded generic pharmaceuticals manufactured internationally, marketed and sold outside the United States. ABT shares were up about 0.2% at $40.82 a share in Monday’s after-market.