Abbott to Acquire Veropharm
Financial Highlights
Under terms of the agreement, the purchase price Abbott pays for Garden Hills is determined based on the percentage of Veropharm shares owned by Garden Hills at the time Abbott purchases Garden Hills. If Garden Hills owns 100 percent of the shares of Veropharm at that time, the total purchase price would be 17 billion rubles (or approximately $495 million U.S. dollars). Abbott will also assume net debt of 4.7 billion rubles (or approximately $136 million U.S. dollars). Abbott plans to fund the transaction with cash on the balance sheet.
Abbott expects the acquisition to add approximately $150 million U.S. dollars in sales in 2015. The transaction is expected to close in the fourth quarter and will not impact Abbott's ongoing earnings-per-share guidance for 2014. The transaction is subject to customary closing conditions and regulatory approvals.
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