Solvay finalizes agreement to buy Fournier Pharma
Solvay announced today that it has signed a final purchase agreement with the shareholders of Fournier Pharma for the acquisition of 100% of the company. Substantial social and regulatory procedures have been successfully completed worldwide. The transaction, which now only awaits approval from the European and some national competition authorities, should be finalized this summer, as previously announced (Press Release of March 24, 2005).
The final terms of the transaction include an initial upfront cash payment of EUR 1.2 billion, instead of the previously announced figure of EUR 1.3 billion. Additional payments of up to EUR 415 million - instead of the previously announced amount of EUR 300 million - are linked to future developments of the acquired activities and subject to specific milestones. The total potential consideration for the transaction remains close to the previously announced figure of about EUR 1.6 billion.
A detailed review of Fournier Pharma confirmed Solvay's initial appraisal of the current performance and future development potential of the global leader in fenofibrates, a successful cardio-metabolic product for treating raised blood lipids.
In particular, the development prospects of fenofibrate products in the United States were strengthened, thanks to the alliance with Abbot, which will continue after the completion of the acquisition. Abbott have recently indicated that full-year 2005 sales of fenofibrate in the US (under the brand name TriCor®) will approach USD 1 billion.
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