PROC - Procaps to acquire Mexican pharmaceutical company Grupo Somar

Procaps (NASDAQ:PROC) said Tuesday it will acquire integrated pharmaceutical company Grupo Somar from global private equity firm Advent International. The acquisition, which marks PROC's entry into Mexico, will increase its manufacturing and R&D capabilities as well as diversify its portfolio. The deal includes combined synergies with a potential net present value between 25-40% of the total purchase price. PROC will fund the cash portion of the consideration with a combination of cash from its balance sheet and incremental debt. PROC also secured a fully committed bridge credit facility. Grupo Somar operates 6 modern production facilities (2 of which manufacture Softgel capsules) in Mexico, including 3 FDA-approved plants with the ability to export to the U.S. "Grupo Somar's diversified portfolio alongside its management and technical capabilities will help accelerate Procaps top and bottom-line growth into the near future in an accretive manner," said PROC CEO Ruben Minski. Alejandro Weinstein, chairman of PROC's

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Procaps to acquire Mexican pharmaceutical company Grupo Somar