Aspen seals Sigma deal

Johannesburg - South African pharmaceutical firm Aspen Pharmacare Holdings [JSE:APN] said on Friday that all conditions precedent had been met for it to acquire the pharmaceutical business of Australian-based Sigma Pharmaceuticals in a deal worth R6.1bn.

The acquisition was approved following the extraordinary meeting of Sigma shareholders, held earlier on Friday.

The effective date of change of ownership is January 31 and will position Aspen as the leading pharmaceutical company in Australia by volume of scripts generated.

Aspen group CEO Stephen Saad said it was excited about this acquisition, which enabled the group to accelerate growth in its Australian business and also to stimulate expansion plans into the broader Asia Pacific region.

"Aspen has already demonstrated its ability to supply high-quality products at competitive prices across more than 100 worldwide territories," he said.

We have confidence in our Australian management team to leverage Aspen's world-class procurement, manufacturing and distribution capabilities to ensure the expanded Aspen business delivers growing value in Australia."

In 2010 Aspen announced that it planned to acquire Sigma's pharmaceutical business on a debt-free basis for a cash consideration of about R6.148bn.

The transaction was, however, subject to a number of conditions precedent, which have now been fulfilled.

Sigma, which has a 98-year legacy in Australia, is listed on the Australian Securities Exchange.

Its pharmaceutical business consists of an extensive product portfolio of branded, generic and OTC products, which include many well-known and trusted Australian brands as well as five manufacturing facilities.

Sigma retains its wholesale business, and is one of three major wholesaler distributors in Australia. Aspen has concluded a long-term distribution agreement with Sigma.

Aspen Australia, established in May 2001, markets and distributes pharmaceutical and consumer products. Aspen Australia has succeeded in delivering double-digit growth since inception as a greenfields operation in 2001, and recorded revenue of about AU$180m in the year ended June 2010.

Aspen Australia is ranked seventh in terms of volume of Australian scripts generated and its sales team has been voted number one in Australia.