Sigma sells up to Aspen
November 23, 2010
SIGMA Pharmaceuticals has
agreed to sell its Pharmaceutical
Division to South African company
Aspen Pharmacare for a tidy $900
million.
The deal, initially agreed to “in
principle” earlier this year, has now
been finalised with the terms and
conditions of the sale, as well as the
status of the ongoing relationship
between Sigma and Aspen
formalised (PD breaking news).
For its $900m, Aspen will acquire
Sigma’s generics, consumer, OTC,
Herron, Ethical Products, Medical
Products, and Orphan and
Manufacturing businesses.
“The Board considers the sale of
the Pharmaceuticals Division to
Aspen to provide the best outcome
for Sigma shareholders,” said
Sigma chairman, Brian Jamieson.
Under the formalised agreement
Sigma’s ongoing relationship will
see it act as Aspen’s preferred
distribution partner under a longterm
supply agreement.
In turn Aspen has also agreed to
manufacture product for Sigma on
an ongoing basis.
The sale of its Pharmaceuticals
Division will also allow Sigma to
consider capital management
initiatives (which could include the
payment of a special dividend to
shareholders) as well as to
significantly reduce its bank debt.
Under the terms of agreement
Sigma will retain full ownership of
the Healthcare Division, comprising
of its wholesale and retail businesses.
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