Endo Completes Two Divestments
Endo International, a generics and specialty branded pharmaceutical company, has completed its previously announced $100-million divestiture of its South African based operations, Litha Healthcare Group, to the Swiss pharmaceutical company, Acino Pharma AG, and has agreed to sell Mexico City, Mexico-based Grupo Farmacéutico Somar, a generic-drug company, to the private-equity firm Advent International for approximately $124 million.
In February 2017, Endo announced Litha no longer aligned with its strategy and was not considered a core asset. With the divestment of Litha, Endo may receive up to an additional $11 million in contingent consideration. During the fourth quarter of 2016, Endo recorded pre-tax impairment charges of approximately $150 million to write-down Litha’s net assets to their estimated fair value less cost to sell.
Meanwhile, the Advent International transaction is expected to close in the second half of 2017, subject to customary conditions, including the approval of the Mexican Competition Commission.
Endo intends to classify the Somar assets and liabilities as held-for-sale in thesecond-quarter 2017 and consequently expects to record an estimated pre-tax impairment charge of approximately $100 million, primarily impacting the carrying balances of goodwill and other intangible assets.
Source: Endo International