Mylan (MYL) said it agreed to acquire South African drugmaker Aspen Pharmacare's APNHY thrombosis business in Europe for €641.9 million ($757 million).
The deal will give Mylan access to products that together posted net sales of €231 million ($272.3 million) for the 12 months ended June 30, 2020.
Mylan expects to use cash on hand to pay $312.2 million upfront. And Mylan expects to use the cash generated from Aspen's European operations to pay $446.3 million on June 25, 2021.
The deal immediately should widen Mylan's adjusted profit margins based on earnings before interest, taxes, depreciation and amortization, Mylan said.
Subject to conditions including European regulatory clearances, the companies expect to close the deal this year.
The thrombosis portfolio would be "a significant addition to Mylan's European business," making the Pittsburgh drugmaker the second-largest supplier of these products to patients in Europe, Mylan President Rajiv Malik said in a statement, citing health-care-data provider Iqvia.
The deal with Aspen, Durban, South Africa, also would further build out Mylan's "commercial infrastructure to further expand access to complex injectables," the executive said.
The drugs, injectable anticoagulants, help prevent blood clots.
Under the terms, Aspen will retain responsibility for manufacturing and will supply Mylan with finished products. Aspen has a vertically integrated supply chain located mainly in Europe, the companies said.
In May 2019 Mylan acquired Aspen Pharmacare's Australian business for $130 million.
In July 2019, Mylan and Pfizer (PFE) , the New York health-care giant, said they would combine Mylan with Upjohn, Pfizer’s off-patent branded and generic established medicines business. The new company will be called Viatris. That deal is expected to close in the fourth quarter.
Mylan said the transaction should not affect its target to repay about $1 billion of debt in 2020 or Viatris's commitments to repay debt and meet leverage targets.
At last check, Mylan shares were off 0.5% at $15.73.