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Cape Town – Ascendis Health on Tuesday announced acquisitions of two European health and care businesses, Remedica and Scitec.
Remedica, a generic pharmaceutical manufacturer based in Cyprus, will be acquired for R4.4bn in addition to a maximum earn-out of R1.3bn after three years. Scitec, a leading European sports nutrition company will be acquired for R2.9bn.
About half of Ascendis’ [JSE:ASC] sales will now be generated by foreign operations and products will be sold in about 144 countries.
Ascendis, which was trading 3% higher at R23 at 09:00 on Tuesday, completed its first offshore acquisition in August 2015 with the purchase of an initial 49% stake in Spanish pharmaceutical company Farmalider.
Ascendis Health CEO Dr Karsten Wellner said the two acquisitions are expected to have a material financial impact and increase Ascendis’ earnings per share by greater than 50%, as demonstrated through Ascendis Health’s announced pro-forma financials.
“Our strategy is to complement growth in the domestic health and care market through international expansion and by acquiring platform businesses offshore,” said Wellner.
“These acquisitions in the European Union will be game changing for Ascendis and position us as an international health and care business of scale, offering an excellent Rand hedge for our South African based business.”
Ascendis Health is a health and care company selling a portfolio of market-leading brands for animals, plants and humans.
Founded in 2008 and listed on the JSE since 2013, the group’s strategy is based on organic, acquisitive and synergistic growth locally and internationally.
