Meda also obtains product rights, trademarks and right to the Recip name. Recipharm will continue as a contract manufacturer for Meda and is not part of the deal. The acquisition is expected to contribute sales of about SEK850 million into Meda’s operation during 2008.
Meda is paying SEK2,650 million in cash and 5.7 million newly issued Meda shares for all shares in Recip on a debt-free basis. This is comparable to an acquisition multiple of about 10 times forecasted EBITDA for 2008. Existing credit facilities finance the cash part. The acquisition requires competition authority approval.
Anders Lonner, CEO of Meda, said: “Meda and Recip have the same magnitude of sales on the Nordic market. The acquisition strengthens our position on our home market both when it comes to organization and products. The existing product range and forthcoming product development mean attractive opportunities. The ambition is to achieve sales of more than SEK1 billion of Recip-products already in 2009. We welcome Recip to the Meda Group.”