The head offices of Valeant Pharmaceuticals International Inc. are seen in Laval, Quebec May 20, 2014.CHRISTINNE MUSCHI/Reuters
Serial acquirer Valeant Pharmaceuticals International Inc. says it plans to use its $800-million (U.S.) acquisition of Egyptian drug-maker Amoun Pharmaceutical Co. as a springboard for further growth in the Middle East and North Africa.
Valeant, which is based in Laval, Que., said on Friday it has reached a definitive agreement to buy Mercury (Cayman) Holdings, Amoun's parent. There are unspecified "contingent payments" to be made in addition to the price tag of about $800-million.
Amoun is the biggest player in Egypt's pharmaceutical sector and owns brands in such therapeutic areas as anti-hypertensives, broad-spectrum antibiotics and anti-diarrheals.
The deal is expected to close in the third quarter.
"Valeant intends for Amoun to serve as a platform for further expansion in the broader Middle East and North Africa pharmaceutical market," the company said.
Amoun is the latest in a long string of acquisitions for Valeant under chief executive officer Michael Pearson, whose strategy is to vault the company into the big leagues of global pharma players.
Earlier this year, Valeant trumped rival Endo International PLC in the takeover battle for Salix Pharmaceuticals Ltd. in an $11.1-billion transaction.
The Amoun transaction includes what Valeant describes as a "large, state-of-the-art manufacturing plant that is considered to be one of the largest and most up-to-date pharmaceutical facilities in Africa and the Middle East."
The owners of Amoun who are selling to Valeant include private equity firms Capital Group, Concord International Investments and Rohatyn Group.
News reports as far back as the spring said there were talks between Valeant and Amoun.
Mr. Pearson has said in the past he is also interested in expanding in rapidly growing Asian markets.