Generic drug giant Teva said Thursday it will acquire Mexican company Representaciones e Investigaciones Medicas (Rimsa) for $2.3 billion to strengthen its presence in the second-largest market in Latin America.
Israel-based Teva Pharmaceutical Industries said the acquisition of Rimsa, an independent pharmaceutical company with a portfolio of products and patents in Latin America, was expected to close in the first quarter of 2016.
"This acquisition delivers on our strategy of increasing our presence in key emerging markets in order to position Teva for long-term growth in these markets," Teva president and chief executive Erez Vigodman said in a statement.
Rimsa had revenue of $227 million in 2014, with annual growth per year of 10.6 percent.
"Rimsa will provide Teva with a significant platform for growth by combining the strong Rimsa brand, licensed portfolio of differentiated, patent-protected products, promising pipeline, significant relationships with physicians, patients and healthcare providers and its strong commercial presence," Vigodman said.
US-traded shares in Teva rose 1.4 percent to $57.25 in opening trade on the New York Stock Exchange.