Endo International plc – Ordinary Shares (NASDAQ:ENDP) has announced that it has successfully finalized the divestment of Grupo Farmacéutico SOMAR to Advent International.
Endo revealed that Advent agreed to acquire Grupo Farmacéutico SOMAR for roughly $124 million. The two parties agreed to the deal after making adjustments pertaining to the net working capital purchase price, cash and debt. The negotiations have been taking place ever since Endo announced the divestment earlier this year
“I would like to thank our SOMAR colleagues for all of their contributions to our Company and wish them continued success with Advent International. With the divestiture of SOMAR complete, we look forward to a continued focus on our core strengths as well as execution against our strategic priorities as a highly focused generics and specialty branded pharmaceutical company,” stated Endo’s president and CEO, Paul Campanelli.
Campanelli revealed that the sale of Grupo Farmacéutico SOMAR is part of his firm’s decision to divest some of the company’s non-core assets. This is part of the company’s strategy to direct its focus towards its main areas of growth.
Advent International’s managing partner and chief executive in charge of the healthcare business in Latin America stated that SOMAR is a key player in the rapidly growing private generics market in the Mexican region. It thus aligns with his company’s focus on the healthcare focus in the region. Advent’s managing director Enrique Pani also stated that the company looks forward to working hand in hand with the talented management team at SOMAR.
Back in July, there was a report stating that Endo planned to classify SOMAR’s assets and liabilities as held-for-sale within the second quarter of this year. The report also stated that the company planned to record a tax impairment charge of roughly $100 million. Endo’s business primarily focuses on providing quality treatments to patients in the generics market and it plans to maintain excellence in the manufacturing, deployment and commercialization of its drugs. The company’s global headquarters are located in Dublin, Ireland.
Endo International’s stock closed the latest trading session on Wesdnesday at $7.18 after losing 375 percent of the value compared to the previous closing price.