Teva Pharmaceutical Industries Ltd has entered into a definitive agreement to acquire Ratiopharm, Germany's second largest generics producer and the sixth largest generic drug company in the world, for €3.63 billion ($4.97 billion).
Teva expects to complete the transaction by end-2010.
The combined entity will have a strong European footprint, holding the leading market position in 10 European markets, including key markets such as the UK, Hungary, Italy, Spain, Portugal and the Netherlands as well as a top three ranking in 17 countries, including Germany, Poland, France and the Czech Republic.
In addition, the transaction will nearly double Teva's sales in Canada.
"This is an important acquisition for Teva. This transaction is perfectly aligned with our long-term strategy in which Europe is an important pillar and growth driver," said Shlomo Yanai, Teva's president and CEO.
The acquisition will position Teva as the leading generic pharmaceutical company in Europe, increasing its European business from sales of $3.3 billion in 2009 to joint pro forma sales of $5.2 billion.
Ratiopharm's robust portfolio includes 500 molecules in over 10,000 presentation forms covering all major therapeutic areas marketed in 26 countries.