- Integrated LatAm healthcare and pharmaceutical company Procaps Group (NASDAQ:PROC) has agreed to acquire Grupo Somar (including Grupo Farmacéutico Somar, Química y Farmacia, Gelcaps, and related entities) from Advent International, private equity.
- Deal terms were not disclosed.
- Grupo Somar is focused on developing, manufacturing, and marketing branded generic, private label, and OTC products targeted to the private market and offering CDMO services in Mexico.
- Grupo Somar operates six modern production facilities (two of which manufacture Softgel capsules) in Mexico, including three FDA-approved plants with the ability to export to the U.S.
- Grupo Somar generated approximately $184 million in net revenues.
- The transaction gives Procaps entry into the second-largest pharma market in LatAm, increased manufacturing and R&D capabilities, (iii) diversified portfolio, and combined synergies.
- Procaps expects to fund the cash portion in cash and incremental debt. Procaps has secured a fully committed bridge credit facility with Bank of America, JP Morgan, and Morgan Stanley in connection with the transaction.
- The company closed the March quarter with a cash balance of $72.1 million.
- The transaction is expected to close in Q4 of 2022.
- Price Action: PROC shares closed 3.90% lower at $7.40 on Tuesday.
