Bausch Health has announced that it has entered into a definitive agreement to sell all of its equity interests in Amoun Pharmaceutical to Abu-Dhabi based ADQ, for a total gross consideration of about $740m.
The sum includes the assignment to the purchaser of an intercompany loan granted by Bausch Health to Amoun, subject to certain adjustments.
The announcement, comes broadly in line with news reports in November 2020 that the two sides were in discussions, valuing Amoun at around $700m.
A source confirmed that the transaction is expected to close in the first half (H1) of 2021, subject to customary closing conditions.
This includes receipt of applicable regulatory approvals, and the approval of Egypt’s Financial Regulatory Authority (FRA) of the mandatory tender offer (MTO), which will be launched by the Purchaser for all of Amoun’s issued share capital.
Amoun’s shares held by Bausch Health and its affiliates will be tendered into the MTO, at a per share price of EGP 37.806.
In 2015, Bausch (formerly Valiant Pharmaceuticals) had acquired Amoun for $800m from funds run by Capital Group, Concord International Investments, and the Rohatyn Group.
Amoun has a market share of 5.2% among Egyptian generic producers, with sales of $243m in 2020. Based on the latest announcement, the deal values the company at an EV-to-Sales multiple of 3.04x on 2020 earnings.
This is close to the trading multiple of Rameda (EV/Sales 2020: 3.08x), but is a significant premium to EIPICO (EV/Sales 2020: 1.82x).
