Recipharm buys Consort Medical

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Swedish pharmaceutical group Recipharm has agreed to buy UK peer Consort Medical for £505m or SEK6.3bn (US$649m).

The owners of Consort Medical, which makes drug delivery devices including nasal inhalers and pharmaceutical compounds, will receive £10.10 per share, valuing the share capital at £505m on a fully diluted basis. They say in separate statements that the board of Consort Medical had unanimously recommended the cash offer.

The offer represent a premium of 39.1% to Consort Medical’s closing price on 15 November of 726 pence.

Recipharm, which develops and manufactures products for other companies in the industry on a contractual basis, says that the deal will boost its scale and profitability, giving it annual pro forma sales of SEK10.8bn crowns and pro forma operating profit before depreciation and amortisation of SEK1.79bn.

Recipharm says:“The combination of Recipharm and Consort is highly complementary given that both organisations provide different products and services within the same value chain for a number of customers.”

Recipharm says that it intended to carry out one or several share issues totalling around SEK2.5bn crowns to repay loans taken to fund the deal and to lower its net debt.

The deal is expected to close the deal in the first quarter of 2020.

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