Abbott To Buy Russian Pharma Co. Veropharm

(RTTNews) - Abbott Laboratories (ABT) Monday said it has agreed to buy Russian pharmaceutical company Veropharm for between $395 million and $495 million in cash.

In a statement, Illinois-based Abbott said it has signed a deal to acquire Garden Hills, the holding company that currently owns a controlling interest in Veropharm, for between 13.6 billion rubles and 17 billion rubles, or about $395 million to $495 million. Garden Hills currently owns more than 80 percent of Veropharm but is expected to own more than 95 percent by the time the transaction closes.

The final purchase price would be determined based on the percentage of Veropharm stake owned by Garden Hills at the time of purchase. Following the acquisition, Abbott will also assume debt of 4.7 billion rubles, or about $136 million.

Abbott expects the acquisition to generate additional sales of about $150 million in 2015. The deal is expected to close in the fourth quarter and will not impact Abbott's ongoing earnings-per-share guidance for 2014.

Abbott said the acquisition will help it gain a portfolio of medicines that is aligned with its current pharmaceutical therapeutic areas of focus in women's health, central nervous system, cardiovascular, and gastroenterology.

Veropharm, which has three pharmaceutical manufacturing sites, has a product portfolio that includes over 100 pharmaceutical products. Veropharm employs more than 2,000 people.

ABT closed Monday's trading at $40.73, down $0.12 or 0.29%, on the NYSE.