Endo International plc, a global specialty pharmaceutical company, announced the acquisition of a broad portfolio of branded and generic injectable and established products focused on pain, anti-infectives, cardiovascular and other specialty therapeutics areas from a subsidiary of Aspen Holdings, a leading publicly-traded South African company that supplies branded and generic products in more than 150 countries.
The transaction is expected to meaningfully expand Endo's presence in South Africa by adding a product portfolio that generated approximately $28 million of revenue during the fiscal year ended June 30, 2014, as well as a sizeable pipeline of products in various phases of development that are expected to launch over the next several years. For 2015, Endo anticipates that EBITDA to be generated by the acquired portfolio will translate into a transaction multiple of less than 10 times EBITDA on a post-synergized basis.
This transaction underscores and helps to deliver upon Endo's strategy of building its international pharmaceuticals business unit through acquisitions. The company's aspiration is to grow its international pharmaceuticals business to represent 25 per cent of Endo's corporate revenues in the longer-term. The portfolio of products to be acquired from Aspen Holdings will be incorporated into Endo's Litha Healthcare Group portfolio and is expected to increase Litha's pro-forma 2015 revenues by 30 per cent and pro-forma pharmaceutical product revenues by 60 per cent.
Under the terms of the agreement, Aspen Holdings will receive a one-time payment of approximately $130 million subject to usual and customary closing adjustments. Endo expects the transaction to close in third quarter 2015 and to be immediately accretive to earnings.
"With the acquisition of these products from Aspen Holdings, Endo continues to grow, diversify and optimize its international portfolio and, specifically, further expand its reach into hospital and pharmacy markets in South Africa," said Rajiv De Silva, president and CEO of Endo. "The transaction also continues to build Endo's R&D pipeline and position the company for future organic growth with the addition of nearly 70 pipeline programs in development with multiple strengths and dosage forms across oncology, anti-infectives, cardiovascular and respiratory. We are excited about this opportunity as it furthers Endo's corporate and M&A strategy."