The acquisition price is confidential and the transaction will be financed through a long-term credit facility.

 

The combination of Actavis' strong portfolio and manufacturing capabilities with Higia's strategically important foothold in the distribution of pharmaceuticals in Bulgaria, is expected to generate significant opportunities to drive Actavis' revenue growth in the market. Currently, Bulgaria is the Group's third largest market, with some EUR25 million in sales for 1H 2005 (12% of Group product sales). Higia's distribution network covers over 2000 pharmacies and has a significant share of pharmacy and hospital sales in the Bulgarian market.

  

The acquisition is not expected to have a material effect on Actavis' financial results in 2005 and is expected to be consolidated into the Group accounts in the second half of the fourth quarter.  Furthermore, Higia is expected to add revenues of EUR90-100 million in the year 2006.  As a distributor Higia has a lower EBITDA to sales margin compared to the Actavis Group, consequently the Groups' EBITDA margin is expected to be around 25% for the year 2006. 

 

Commenting on the acquisition, Robert Wessman, President and CEO said: "Bulgaria is one of Actavis' most important markets and our objective is to strengthen our good position there even further.  The acquisition of Higia will enable us to control a larger part of our value chain giving us immediate access to 2000 pharmacies and strengthening our sales and marketing promotional strategy.