Procaps, after going public last year, aims to become a top pharma player in Latin America. With the acquisition of Grupo Somar, it’s on its way.
Grupo Somar, an independent pharma company based in Mexico, develops and manufactures generic drugs plus private-label and over-the-counter medications. It operates six factories in Mexico, two of which make softgel capsules and three of which are FDA-approved to export to the U.S.
Investment firm Advent International purchased Grupo Somar for $124 million back in 2017 and has now decided to sell the company. Procaps didn't disclose the price of its purchase, but it said Grupo Somar generated $184 million during its 2021 fiscal year.
Procaps is a 45-year-old, family-owned organization with more than 4,700 employees in 13 countries. The company went public last September in a special purpose acquisition company deal as part of its effort to speed up its ability to strike M&A agreements.
At the time, CEO Ruben Minski said the company aimed to “take a significant share of the approximate $58 billion pharmaceutical market in Latin America.”
With the deal, Procaps secures its entry into the second largest pharma market in Latin America.
The acquisition “unlocks significant synergies across all areas of the combined companies,” the chief financial officer of Procaps, Patricio Vargas, said in a statement, including product portfolio, plant efficiency and back-office centralization.
The transaction has an anticipated closing date later this year, pending approval from Mexico’s Federal Economic Competition Commission.