Transaction expected to close in June
Arab Pharmaceutical Manufacturing Company, a subsidiary of Jordan-based generics group Hikma Pharmaceuticals, has signed an agreement to acquire the 50% stake that it did not previously own in the Algerian company Al Dar Al Arabia Pharmaceutical Manufacturing Company from the Jordanian pharmaceutical company, Dar Al Dawa, for US$18.5m.
Al Dar Al Arabia was established in 2005 as a joint venture between APM, a wholly owned subsidiary of Hikma, and Dar Al Dawa. The company owns a 6,000m2 manufacturing facility and approximately 21,000m2 of land in an industrial zone in Algiers.
Once operational, the Al Dar Al Arabia plant will double Hikma's manufacturing capacity in Algeria and provide scope for further expansion.
The transaction is expected to close at the end of June 2010. Existing cash resources will fund the acquisition.