FTSE 250 pharmaceutical group HIkma is to buy the Egyptian Company for Pharmaceuticals & Chemical Industries as it strengthens its position in a rapidly growing market.
It is to pay EGP142.4m - around $22.2m - to buy the firm from a consortium of shareholders.
Hikma's Chief Executive, Said Darwazah, said that since his company entered the Egyptian market in 2007, it had rapidly grown its presence in a country that had excellent growth opportunities.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"This acquisition will further accelerate that growth, expanding our product portfolio and adding additional manufacturing capacity and technologies," he said.
The company quoted IMS Health figures, which showed Egypts private retail market was valued at around $2.3bn and grew by 10.6% in the twelve months to June 2012.
Hikma Egypt said it was the seventeenth largest pharmaceutical manufacturer in Egypt, with an estimated market share of 1.6%.
-
Going part-time could leave a £58,000 hole in your pension: how to plug the gapThere are many reasons for switching to part-time work, but some savers don’t consider the impact on their pension until it is too late
-
Three bargain investment trusts to add to your portfolioThese three investment trusts are bargains compared to their net asset value (NAV), but one fund analyst thinks the deep discounts are unwarranted.
