Teva Pharmaceuticals (Nasdaq:TEVA) is to buy Honeywell Pharmaceutical Fine Chemicals for an estimated $90 million.

Honeywell produces active pharmaceutical ingredients (API) in two plants in north Italy. The company had a turnover of $55 million last year.

Following the acquisition, Teva will own four plants in North Italy, which according to Teva CFO Dan Suesskind will increase the generic drug firm's flexibility and specialization as well as expanding its manufacturing capabilities.

Suesskind added that Honeywell is a profitable company, and Teva could improve on this by expanding its production.