Teva Pharmaceutical Industries (TLV:TEVA) has agreed to buy Rimsa (Rimsa), a Mexican drugmaker, in a $2.3 billion deal. Teva is looking to expand into the Latin American market.
The deal will be Teva’s second major acquisition in the last few months. In July, the firm made a $40.5 billion cash and stock deal with Allergan to acquire its generic drug business. The move solidified the company’s position as the number one maker of generic medications.
Teva’s deal with Rimsa will have similar effects, solidifying the company’s position as the number one drug company in Mexico and the second-largest manufacturer in Latin America. When all is said and done, Teva will be among the top five companies in emerging markets globally.
The Israeli-based company stated that the acquisition would provide substantial cost savings. Rimsa will bring a portfolio of specialty products that are protected by patents. In addition, the company will also bring a loyal customer base, a well-established brand and a strong commercial presence.
In 2014, Rimsa brought in $227 in revenue. Since 2011, the company has seen an annual growth rate of about 10.6%.
The company stated that it plans on building on Rimsa’s established reputation, customer base and sales force. New specialty drugs are also in the works as well as generic medicines from the Teva brand.
The deal is expected to close early in 2016, and will be funded by lines of credit and cash on hand.