ASPEN: 9,767 -334 (-3.31%)
South Africa's Aspen to sell infant formula unit to Lactalis for $864 mln
JOHANNESBURG, Sept 13 (Reuters) - Aspen Pharmacare
is selling its global infant formula business to French dairy
group Lactalis for 12.9 billion rand ($864.5 million), the
African drugmaker said in a results statement on Thursday.
The so-called nutritionals business sells infant milk
formula in the Asia-Pacific region, Sub-Saharan Africa and Latin
America, and has been building a growing presence in the Middle
East and China.
"The disposal is in line with our strategic intention to
focus our attention on our core pharmaceutical business, which
includes the anaesthetics, thrombosis and high potency and
cytotoxic portfolios," Aspen CEO Stephen Saad said in a
"The heightened focus is expected to drive increased
business efficiency and performance."
As part of the transaction, Lactalis will receive any
intellectual property and goodwill presently owned by Aspen
Holdings and Pharmacare Ltd and Aspen Global Incorporated.
Aspen, which is Africa's biggest generic drugs manufacturer,
will also dispose of tangible assets and shares in companies
conducting Aspen's infant formula business across Asia-Pacific,
including shares held by joint venture partners in New Zealand
and Hong Kong.
The deal will be funded with cash, Aspen said.
Lactalis is a privately owned global leader in the dairy
industry, achieving revenue of 18.4 billion euros ($21.4
billion) from sales in more than 200 countries.
($1 = 14.9226 rand)
($1 = 0.8604 euros)
(Reporting by Nqobile Dludla
Editing by David Goodman)
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