The Competition Commission has approved JSE-listed health and care brands group Ascendis Health’s application to acquire 100% of pharmaceutical business Akacia Healthcare for R345-million.
The transaction, which included Akacia’s 23 000m² manufacturing facility in Isando, Johannesburg, valued at R100-million, would give Ascendis an additional local pharmaceutical manufacturing capability, while increasing the group’s competitive participation for State tenders, which favoured local manufacture.
The deal also presented additional integration benefits aligned with Ascendis’s newly acquired 49% stake in Spanish generic specialist Farmalider.
“This acquisition will contribute towards growing the local and international position of our pharmaceutical division in the prescription medicine and consumer health markets, while at the same time offering access to lucrative new distribution channels, such as retail pharmacies and prescribing doctors,” said Ascendis Health CEO Dr Karsten Wellner.
Akacia manufactured and distributed branded generic prescription, over-the-counter and complementary medicines, and assumed leading positions in several pharmaceutical market segments.
It owned brands such as probiotic, Reuterina, which was ranked number one in the anti-diarrheal market with over 30% of the market share, as well as household brands such as Sinucon and Sinuend, which ranked in the top three brands in the cold and flu market.