Aspen Global buys Australian product portfolio for Rs 2.2 bln

Aspen Group said Aspen Global Incorporated has acquired Australian product portfolio of 25 established pharmaceutical products which are distributed in Australia.

For this acquisition, Apsen Global has reached an agreement with GlaxoSmithKline plc. The transaction consideration GBP 172 million (ZAR 2.2 billion at ZAR 12.72/GBP) is based on the completion date of 31 October 2012 and is subject to the minor reduction should completion be delayed beyond this date.

The transaction is subject to the approval of the Australian competition authorities and the approval of the Australian Foreign Investment Review Board.

Aspen Global Incorporated is the wholly owned subsidiary of Aspen Holdings. The existing manufacturing arrangements for the products will be assumed by Aspen Global and it also aims to hire Aspen Australia to distribute the products.

The deal will be funded from the new offshore debt facilities. The arrangements from the new debt have been settled and the remaining is subject to the documentation being completed.

The products acquired through the transaction represent an excellent fit with Aspen’s current portfolio, the company said. The added revenue will strengthen Aspen’s position as one of the leading pharmaceutical companies in Australia, it said.

Aspen is confident that it will be able to leverage its proven ability to reinvigorate the older brands and the products considerable brand equity to enhance the value of the portfolio.

Besides, it also expects the deal to be earnings accretive in the year ending June 30, 2013.

Aspen is a supplier of branded and generic pharmaceuticals in around 100 countries across the globe and of consumer and nutritional products in selected territories. The company is listed on the JSE Ltd and is also included in its Top40 Index.