Sawai Pharmaceutical Co. Ltd, a leading Japanese generic pharmaceuticals manufacturer, and Upsher-Smith Laboratories, Inc., an established generics manufacturer based in Minnesota, U.S., today announced the signing of an agreement for Sawai to purchase the generic pharmaceuticals business of Upsher-Smith, from its parent, ACOVA, Inc.
Upsher-Smith is a privately-held U.S. pharmaceutical company, owned by the Evenstad family through their company, ACOVA. Mark Evenstad is the CEO of Upsher-Smith, and his father, Ken Evenstad is the Chairman. Upsher-Smith has a diversified product portfolio of over 30 pharmaceutical products, mainly oral solid preparations, and a strong pipeline of over 30 products.
Under the agreement, Sawai will purchase all the equity interest in the generic pharmaceuticals business of Upsher-Smith from ACOVA, for consideration of $1.05 billion. The transaction will be financed by bank loans and available cash. It is expected to close near the end of June 2017, subject to customary regulatory approvals. Rusty Field, the current President of Upsher-Smith, will continue leading the company. Following the closing, Upsher-Smith’s non-generic pharmaceuticals businesses will remain with ACOVA.
The acquisition will mark a major expansion of Sawai’s presence in the U.S. market. Moving forward, Sawai plans to build a US business that leverages its intellectual property and combines R&D capabilities with Upsher-Smith’s manufacturing base, strong distribution network, established commercial relationships and highly respected brand. For Upsher-Smith, the acquisition brings access to Sawai’s state-of-the art manufacturing technology and opportunities to bring its medicines to exciting new markets, like Japan.