Canadian drugmaker Valeant Pharmaceuticals International Inc. said Tuesday it will acquire Lithuanian specialty pharmaceutical company AB Sanitas in a two-stage deal worth 314 million euros ($441.3 million) in cash.
AB Sanitas sells about 390 generic products in nine Central and Eastern European countries. Its largest markets are Poland, Russia, and Lithuania.
Valeant said the major shareholders of AB Sanitas have agreed to sell it an 87.2 percent stake in the company. That portion of the deal is expected to close during the third quarter, and Valeant said it will then start an offer for the remaining shares.
The Mississauga, Ontario, company expects to assume 50 million euros ($70.3 million) in debt as part of the deal. It expects the acquisition to close during the fourth quarter.
AB Sanitas is expected to report revenue of about 100 million euros ($140.5 million) in 2011, with revenue growth in the low double digits in the coming years. The company is based in Kaunas and develops its own dermatology, ophthalmology, and hospital injectable drugs.
Valeant expanded its operations last year with a deal to combine with Biovail Corp