Sawai to acquire Upsher-Smith's generic business for $1.1bn

TOKYO, JAPAN/ MINNEAPOLIS, US: Japan’s Sawai Pharmaceutical Co Ltd (Sawai) sign agreement to acquire generic pharmaceuticals business of US drug manufacturer Upsher-Smith Laboratories Inc for $1.05 billion (approx $1.1bn). Marking Sawai’s first overseas acquisition.

The deal is expected to close near the end of June 2017.

In addition, Sawai plans to build a US business that leverages its intellectual property and combines R&D capabilities with Upsher-Smith's manufacturing base, strong distribution network, established commercial relationships and highly respected brand.

Rusty Field, the current president of Upsher-Smith, will continue leading the company. Following the closing, Upsher-Smith's non-generic pharmaceuticals businesses will remain with ACOVA Inc, the parent company of Upsher-Smith.

No changes to Upsher-Smith's operations are currently anticipated, and under the leadership of Rusty Field, the current management team will continue to lead Upsher-Smith from its current headquarters in Minneapolis.

"It was very important for us to find a buyer that shared Upsher-Smith's values, was fully committed to its long-term success and was looking for a strong and fully operational US platform for growth. Sawai is a compelling strategic fit and we are delighted that the generics business is poised to benefit from the extensive resources and management focus that Sawai will bring," said Mark Evenstad, CEO of Upsher-Smith.

“We look forward to working closely with Rusty and the talented management team to forge a new global chapter in Upsher-Smith's future together. Most importantly, we are committed to the entire team at Upsher-Smith, and to expanding the opportunities for the US workforce at Upsher-Smith," said Mitsuo Sawai, president, Sawai.

“Together we look forward to achieving recognition as a global contributor to the growth of generics, with a firm grounding in 'Patients First',” added Rusty Field.

Sawai's financial advisors are Torreya Partners LLC and SMBC Nikko Securities Inc, and legal counsel is Debevoise & Plimpton.

J P Morgan Securities LLC and BMO Capital Markets served as financial advisors to Upsher-Smith and Lindquist & Vennum LLP served as legal counsel.

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