Abbott to buy Latin American drugmaker CFR in $2.9 billion deal

Abbott Laboratories said on Friday it would acquire Chile's CFR Pharmaceuticals SA in a two-part, $2.9 billion deal, to double its branded generic drugs portfolio and expand in the fast-growing Latin American market.

Abbott, which spun off AbbVie Inc that included the blockbuster drug Humira last year, said the purchase would add $900 million in sales in 2015. Analysts expect Abbott to have 2015 sales of $23.7 billion, according to Thomson Reuters I/B/E/S.

Abbott said it would buy the holding company that indirectly owns about 73 percent of Santiago-based CFR Pharmaceuticals and would conduct a tender offer for the remaining shares. If all publicly held shares are tendered, the total purchase price is estimated at $2.9 billion.

CFR Pharmaceuticals sells about 1,000 products across Latin America, including generic drugs that have brand names. It has 7,000 employees and research and development and manufacturing facilities in Chile, Colombia, Peru and Argentina.

Abbott sells healthcare devices and branded generics in 150 countries and has 69,000 employees.

Abbott said it would start a tender offer to purchase the outstanding shares of the company after it receives regulatory approvals. It expects the deal to close in the third quarter and contribute to sales in the fourth quarter.

Barclays advised Abbott on the transaction and Deutsche Bank Securities advised CFR.