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Sweden's Karo Pharma to buy Sylphar in $326 million deal

By Reuters

<div> <p><span class="caps">STOCKHOLM</span> – Specialty pharma group Karo Pharma has agreed to buy Belgium-based Sylphar International from Vendis Capital and Sylphar’s founder for 290 million euros ($326 million), it said on Tuesday.</p> <p>Karo Pharma said Sylphar, which develops and markets over-the-counter products, would boost its market position and help it grow, particularly in the digital marketplace.</p> <p>The Swedish company added that it would carry out a new share issue of around 200 million to 250 million euros, with preferential rights for its existing shareholders.</p> <p>Karo Intressenter AB, owned by private equity firm <span class="caps">EQT</span> and which has a 79.85% stake in Karo Pharma, is supporting the transaction, it said.</p> <p>“Karo estimates that the transaction brings synergy potential for the company, predominantly in the form of sales synergies,” Karo Pharma said in a statement.</p> <p>Sylphar, whose main brands are Nutravita, Alpha Foods andRemescar, had sales of around 64 million euros in the October-September period.</p> <p>Karo Pharma said an additional payment of 10 million eurosmay be paid if certain growth targets for Sylphar are met, adding the transaction would be completed in January 2022.</p> <p>($1 = 0.8901 euros)</p> <p/> </div>