Swedish biotechnology group Biovitrum has signed a deal to buy drug firm Swedish Orphan, jointly owned by holding company Investor AB and private equity firm Priveq. Biovitrum will pay an upfront 3.5 billion Swedish kronor ($493.2 million) on a cash and debt-free basis.
"The two companies fit like a hand in a glove. By joining forces with Swedish Orphan, Biovitrum takes another important step in the transformation set out in the strategy adopted two years ago. In one giant leap, we form a company with a leading position within rare diseases and a solid platform for future growth and profitability," says Biovitrum's chief executive, Martin Nicklasson, who will remain CEO of the merged group.
The two companies will be combined forming Swedish Orphan Biovitrum with pro forma revenues 2009 of around 2 billion kronor and an EBITDA margin of 15%. The transaction will be instantly accretive to earnings per share for Biovitrum's shareholders, the company says.
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