Swedish Karo Pharma buys Sylphar for a deal of 326 million dollars
STOCKHOLM, November 23 (Reuters) – Specialty pharma group Karo Pharma (KARO.ST) has agreed to buy Belgium-based Sylphar International from Vendis Capital and Sylphar founder 290 million euros ($ 326 million), it was said on Tuesday .
Karo Pharma said that Sylphar, which develops and markets over-the-counter products, would strengthen its market position and help it grow, especially in the digital market.
The Swedish company added that it would carry out a new share issue of approximately 200 million to 250 million euros, with preferential rights for its existing shareholders.
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Karo Intressenter AB, which is owned by the private equity company EQT (EQTAB.ST) and which has a share of 79.85% in Karo Pharma, supports the transaction, it is said.
“Karo appreciates that the transaction has synergy potential for the company, primarily in the form of sales synergies,” Karo Pharma said in a statement.
Sylphar, whose main brands are Nutravita, Alpha Foods and Remescar, had sales of approximately EUR 64 million during October-September.
Karo Pharma said that an additional payment of EUR 10 million could be paid if certain growth targets for Sylphar are achieved, adding that the transaction would be completed in January 2022.
($ 1 = 0.8901 euros)
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Reporting by Helena Söderpalm; editing by Niklas Pollard
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