Swiss Group DKSH Expands Into Middle East With Major Acquisition
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DKSH expandiert mit grossem Zukauf in Nahost
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The purchase price for all shares in Newbridge Pharmaceuticals amounts to US$390 million, DKSH announced on Monday.
Newbridge specialises in the marketing of medicines and pharmaceuticals for rare and complex diseases and operates in 14 markets across the region. The most important of these include Saudi Arabia and the United Arab Emirates.
According to the statement, the acquisition marks DKSH Healthcare's first foray into the Middle East and North Africa. Until now, the division had focused on the Asia-Pacific region.
DKSH CEO Stefan Butz is quoted in the press release as saying that the business of providing outsourced marketing services for pharmaceutical companies has been a key growth driver in recent years. With Newbridge, DKSH also aims to expand its business in medicines for rare diseases.
Founded in 2010, Newbridge employs over 300 staff and operates in areas including oncology, neurology, immunology and gastroenterology. In addition to distributing medicines, Newbridge also supports pharmaceutical companies with product launches and market access. The current management team is set to remain with the company following the acquisition.
For 2027, DKSH expects Newbridge to generate revenue of around $385 million and an EBITDA margin in the high single-digit percentage range. The acquisition is expected to have a positive impact on DKSH's revenue growth, adjusted EBIT margin and earnings per share from the date of completion.
The transaction will be financed through debt. According to DKSH, this will leave sufficient financial flexibility for further acquisitions. The current dividend policy is set to remain unchanged. The acquisition is expected to be completed by the end of the first quarter of 2027, subject to regulatory approvals.
More More Demographics Keeping the family silverware in the businessThis content was published on Feb 11, 2013 Last year, two of Switzerland's most enduring corporate family dynasties – Diethelm and Keller – diluted their control of multinational outsourcing group DKSH by floating the company on the stock market. At a stroke, Switzerland's largest privately held company entered a new phase of public ownership. Almost nine out of ten Swiss companies are classified as family...
Read more: Keeping the family silverware in the bus
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