Abbott announced today a definitive agreement to acquire the nutrition businesses of Wockhardt Limited, Carol Info Services Limited, and certain Wockhardt subsidiaries and group companies for consideration totaling approximately US$130 million in cash.
Wockhardt, based in Mumbai, India, has a significant presence in India's pediatric and adult nutrition segments with infant formulas, weaning foods and adult protein supplements. These products hold the number two position in India's pediatric nutrition category with Farex(R), Dexolac(R) and Nusobee(R) infant formulas and Farex(R) weaning cereal. The adult protein supplement, Protinex(R), is the segment leader. These transactions also include nutrition manufacturing facilities located in Lalru and Jagraon, India.
"This acquisition is an excellent strategic fit for Abbott to accelerate growth of its nutrition business in India, where the nutritional market is expected to experience strong growth in the coming years," said Holger Liepmann, executive vice president, Global Nutrition, Abbott. "Combining these trusted nutrition products, local manufacturing capability and commercial infrastructure with Abbott's existing pediatric and adult nutrition offerings positions Abbott very well to serve Indian consumers."
Abbott's international nutrition business is an important growth driver for the company and has had particularly strong growth in China, Southeast Asia and Latin America in recent years.
The acquisition includes approximately 600 employees in total. Abbott has approximately 1,500 employees in India across all of its businesses and has been operating in India since 1910. Abbott offers Isomil(R), PediaSure(R), Ensure(R) and Glucerna(R) in India and plans to introduce additional products from its broad-based nutritional portfolio to Indian consumers in the coming years.
Under terms of the agreement, Abbott will acquire the nutrition businesses of Wockhardt Limited, Carol Info Services Limited, and certain Wockhardt subsidiaries and group companies for consideration totaling approximately US$130 million in cash. There will be no impact to Abbott's previously issued earnings-per-share guidance for the full-year 2009.
These transactions are subject to customary closing conditions and various approvals. Abbott expects the transactions to close in the second half of 2009. The transactions are not being conducted by Abbott's publicly traded subsidiary, Abbott India, Ltd.
Abbott is a global, broad-based health care company devoted to the discovery, development, manufacture and marketing of pharmaceuticals and medical products, including nutritionals, devices and diagnostics. The company employs more than 72,000 people and markets its products in more than 130 countries.
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Abbott Forward Looking Statement
Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors," to our Annual Report on Securities and Exchange Commission Form 10-K for the year ended Dec. 31, 2008, and are incorporated by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments.