Profit House bought ICN's Russia unit for $55 million after offering $5 million more than its closest competitor, Vedomosti reported Monday, citing an anonymous ICN official who said the transaction was finalized late Friday.
The price paid in the transaction represents more than 50 percent of annual sales. Alfa Bank was a financial consultant for the sale, the paper said.
"The cash received in the transaction will further our ability to invest in future growth," said Robert O'Leary, ICN's chairman and chief executive.
ICN's Russian business includes five manufacturing facilities, a sales and distribution network, and 96 retail pharmacy stores and kiosks throughout the country. In total, the operations, which employ about 6,100 people, generated approximately $100 million in revenue last year.
The sale includes all trademarks belonging to ICN Russia with the exception of the ICN logo, Vedomosti reported.
Profit House is no stranger to the domestic pharmaceuticals market and manages the Ufa-based drug plant Ufa-Vita and the Chudo-Doktor chain of drugstores in Moscow.
The Protek distribution company, drugstore chain 36.6 and the OST-Vest corporation also made offers.
Millhouse, which oversees Abramovich's holdings in the oil, aluminum, manufacturing, and fast-moving consumer goods industries, announced the purchase Monday.
"This is an important transaction for Millhouse as we seek to expand into new, high-growth industries in Russia. ICN has established a solid foundation upon which we expect to build a major Russian pharmaceutical company," Millhouse chairman Eugene Shvidler said.
ICN's losses in Russia before debt write-offs reached $5.8 million last year, Vedomosti reported, citing documents sent to prospective buyers.
(Bloomberg, Reuters, MT)
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