Teva CEO: This acquisition delivers on our trategy of increasing our presence in key emerging markets.
Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) is acquiring Mexican pharmaceutical manufacturing and distribution company Representaciones e Investigaciones MŽdicas, S.A. de C.V. (Rimsa). The deal also includes a portfolio of products and companies, intellectual property, assets and pharmaceutical patents in Latin America and Europe in a debt-free, cash free set of transactions, for an aggregate $2.3 billion. Through this acquisition, Teva will become a leading pharmaceutical company in Mexico. Teva expects the deal will yield substantial and achievable synergies and offer a platform for growth in the region.
Teva president and CEO Erez Vigodman said, "This acquisition delivers on our strategy of increasing our presence in key emerging markets in order to position Teva for long-term growth in these markets. Rimsa will provide Teva with a significant platform for growth by combining the strong Rimsa brand, licensed portfolio of differentiated, patent-protected products, promising pipeline, significant relationships with physicians, patients and healthcare providers and its strong commercial presence. The combination of our companies lays the foundation for a leadership position and high long-term, profitable and sustainable growth in the region and further reinforces our commitment to innovation, quality and improving the health of people worldwide."
Rimsa had revenue in 2014 of $227 million with an annual growth, year over year of 10.6% since 2011. The company has an extensive portfolio of specialty products, including fixed-dose combination products which have fueled its growth. Rimsa's well-established sales footprint is expected to provide a platform for additional Teva products.