Abbott Completes Acquisition of Solvay Pharmaceuticals
Abbott has completed its €4.5 billion acquisition of Belgium-based Solvay Pharmaceuticals. The acquisition gives the U.S.-based healthcare company a large and complementary portfolio of pharmaceutical products and gives the company entry into key global emerging markets.
Based on the timing of the close, Abbott expects the acquisition to add approximately $2.9 billion to Abbott's 2010 total reported sales, the majority outside the U.S., and add approximately $500 million to Abbott's annual pharmaceutical R&D investment.
Werner Cautreels, chief executive officer of Solvay Pharmaceuticals, will serve in a transitional role and will then leave the company. The impact of the Solvay Pharmaceuticals acquisition has been reflected in Abbott's previously issued earnings-per-share guidance for the first-quarter and full-year 2010. The transaction also includes payments of up to €300 million if certain sales milestones are met between 2011 and 2013.