Fagron strengthens strategic position in USA through highly complementary acquisition of Humco
03 April 2018 - 3:00PM
Nazareth (Belgium)/Rotterdam (The
Netherlands)1, 3 April
2018
Regulated information - Inside information
Fagron strengthens strategic position in USA
through highly complementary acquisition of Humco
Fagron announces today the acquisition of Humco, a
leading developer, manufacturer and supplier of patented delivery
vehicles and branded pharmaceutical products to over 45,000
pharmacies in the USA. The acquisition price for Humco amounts to
US$ 47.5 million (approximately € 38.6 million) in cash, with the
potential for a performance linked earn-out of up to US$ 22.5
million (approximately € 18.3 million) in cash over a two-year
period. The total consideration for the acquisition of Humco is
thus capped at US$ 70.0 million (approximately € 56.9 million). The
transaction includes all technologies, scientific data, patents and
trademarks, as well as the production facility of Humco in Texas
(USA).
Humco, founded in 1872 as Hutchison Medicine
Company, realized a turnover of approximately US$ 32 million
(approximately € 26 million) and an EBITDA-margin in line with that
of the activities of Fagron North-America in 2017. The company is
focused on developing, manufacturing and commercializing innovative
patented delivery vehicles (including topical and transdermal
creams, syrups and suspensions) and branded pharmaceutical products
that are cash-paid by the customer (not reimbursed). In 2016, Humco
added a limited portfolio of active pharmaceutical ingredients to
its product offer. Humco serves over 45,000 pharmacies in the USA,
mainly indirectly through pharmacy chains and wholesalers. Humco is
located in Austin (Texas, USA) and has a state-of-the-art FDA
registered, cGMP compliant production facility in Texarkana (Texas,
USA). All 140 employees from Humco join Fagron, bringing expertise
to innovate and serve an expanded customer base worldwide.
"I am pleased to welcome Humco to
Fagron Group. Their high-quality portfolio of branded
pharmaceutical products and widely used patented delivery vehicles
that are supplied to a broad customer base of pharmacy chains and
wholesalers in the USA, is highly complementary to our extensive
range of active pharmaceutical ingredients. Humco is an excellent
strategic fit for Fagron. By combining the two
companies, we create a
strong competitive company with significant scale, strengthening our market position in the USA. Our global
footprint and leading market positions in Europe and South-America
will enable us to successfully launch and grow the innovative
branded pharmaceutical products and delivery vehicles of Humco
outside the USA. We look forward to welcome the Humco employees to
the Fagron family," said Rafael Padilla, Fagron's CEO.
Following the transaction, Gregory Pulido, Humco's
Chairman and CEO, will transition to the role of Executive Chairman
while Andrew Pulido, Humco's current President, Global
Pharmaceuticals, will assume the sole role of President at
Humco.
"We are delighted and proud to
become part of the Fagron Group. Being part of a large global
organization and a world leader in pharmaceutical compounding,
creates a more capable and dynamic company for our customers and
employees. We complement each other, selling in adjacent markets
with very little customer overlap, enabling a significant number of
growth opportunities. While we introduce our successful and unique
patented delivery vehicles and branded pharmaceutical products
internationally, our customers can benefit from the excellent range
of more than 1,600 high quality active pharmaceutical ingredients
of Fagron," said Gregory Pulido.
Andrew Pulido said, "I am honored
to become Humco's President at such an exciting time. The joint
activities of Fagron and Humco are extremely well positioned to
capitalize on growth opportunities in the USA and around the world.
I am confident that our expertise, creativity and dedication will
enable us to offer increased value to our customers, suppliers and
employees as well as to further extend Fagron's leadership in the
market for personalized medication."
Conference call
Fagron will organize a conference call today to provide further
information regarding the acquisition of Humco. The conference call
starts at 9:30 CET. As of 10 minutes in advance, you will be able
to dial in using the numbers and confirmation code below:
The Netherlands: +31 (0)20 721 92 51
Belgium/Europe: +32 (0)2 404 06 59
United States: +1 646 828 81 57
United Kingdom: +44 (0)330 336 91 05
Confirmation code: 5213833
The presentation will be available from 9:00 CET
on http://investors.fagron.com.
As from 4 April, the conference call may be
listened to or downloaded on Fagron's corporate website
(http://investors.fagron.com/).
In the event of differences
between the English translation and the Dutch original of this
press release, the latter prevails.
1 This press
release was sent out by Fagron NV and Fagron BV.
Please open the link below for the press
release:
Fagron strengthens strategic position in USA
through highly complementary acquisition of Humco
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announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Fagron NV via Globenewswire
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