Solvay Group agrees to acquire Unimed Pharmaceuticals for $123 million

Belgium's Solvay says that its US unit is to acquire all outstandingshares of Unimed Pharmaceuticals, based in Buffalo, Illinois. Solvay Pharmaceuticals has offered $12 per share, giving the transaction a net value of approximately $123 million, and Unimed's board, on approving the deal, said it "is fair and in the best interest of the Unimed stockholders."

Solvay Group's chief executive Alois Michielsen said that Unimed "fits very well with the strategic objective of broadening our presence in the US pharmaceutical business." He added that the acquisition will contribute to the company's plan to "rapidly increase the total number of our US sales representation from 450 at the end of 1998 to over 1,000 people in year 2000."

Juergen Ernst, president of Solvay's worldwide pharmaceuticals activities, said that the deal would enable the group "to quickly and effectively maximize sales potential" for Teveten (eprosartan mesylate) and Aceon (perindopril), two antihypertensives which were recently acquired from SmithKline Beecham and Servier, respectively (Marketletters passim). While Solvay's own existing sales force will sell Aceon, Teveten will be sold by Unimed's representatives, "whose current number will be increased very significantly," he added.