Gedeon Richter has big plans for women's health in Western Europe--and it's snapped up some assets to make those plans a reality. The company has agreed to pay €236.5 million ($331.4 million) for Aachen, Germany-based Grunenthal's contraceptive business. The deal adds seven oral birth control products to Richter's stable, plus a sales network in Germany and Italy.
The Grunenthal deal follows Richter's October buyout of the Swiss company PregLem, also part of the Hungarian company's strategy for expanding westward and building up its women's health portfolio. "We've realized that Richter can't be competitive unless we strengthen our presence in western Europe," CEO Erik Bogsch said at a press conference in Budapest (as quoted by Bloomberg).
Richter plans to augment Grunenthal's sales operation with a new sales network in Spain. Bogsch said the company plans to spend €15 million to build that network.