Procaps Group Announces Termination of Acquisition Agreement with Grupo Somar
Wednesday, January 04, 2023
Procaps Group, S.A., a leading integrated LatAm healthcare and pharmaceutical conglomerate, today announced the termination of its previously-reported definitive agreement (the “SPA”) to acquire Grupo Somar from the sellers under the SPA.
As previously reported, the closing of the acquisition of Grupo Somar by the Company was delayed indefinitely after the Company was informed by the sellers that a court in Mexico City issued an Embargo Precautorio affecting certain shares of capital stock of Grupo Somar in connection with a pending dispute that involves an investment by a fund managed by Advent International but that is otherwise unrelated to the sellers, Grupo Somar, the Company, or the acquisition.
The time required for resolution of the Embargo remains uncertain and is not in the Company’s control. Following the failure of the transaction to close on December 31, 2022, the Company provided the sellers a formal notice terminating the SPA in accordance with the terms thereof. Procaps remains open to discussing alternatives with the sellers but cannot provide any assurances regarding whether an acquisition of Grupo Somar by the Company will occur in the future.
“While we were disappointed with this outcome, we remain committed to our strategy of building an integrated healthcare organization that will capture the benefits of our organic and inorganic growth,” said Ruben Minski, Procaps Chief Executive Officer. “We believe we are well positioned to create sustainable value for our shareholders over the long-term as we build on our plans to drive growth, expand our portfolio and continue to focus on our roll-up strategy. We look forward to presenting our 2023 value creation initiatives at the J.P. Morgan Healthcare Conference next week.”
Procaps will present at the 2023 J.P. Morgan Healthcare Conference on Tuesday, January 10, 2023, at 8:00 am PST.
