Abbott to acquire BASF pharma business

Abbott Laboratories, Abbott Park, IL, and BASF Aktiengesellschaft, Ludwigshafen, Germany, today announced that the companies have entered into a definitive agreement for Abbott to acquire the pharmaceutical business of BASF, which includes the global operations of Knoll Pharmaceutical Co., Mount Olive, NJ.

Under the terms of the agreement, Abbott will pay $6.9 billion in cash for the pharmaceutical business of BASF, but the agreement is subject to approval by regulatory agencies and customary closing conditions. The acquisition will be financed through a combination of internal cash resources and external loans.

Executives at Abbott are convinced that the merger of the two companies will greatly benefit Abbott's global growth. "Our acquisition of BASF's pharmaceutical business is an excellent strategic fit that demonstrates Abbott's commitment to our global pharmaceutical business and offers significant synergies," said Miles D. White, chairman and chief executive officer of Abbott. "BASF Pharma enhances Abbott's position as a global pharmaceutical company through increased sales, greater pharmaceutical research and development capacity, and a solid commercial business, in particular across Europe and in Japan."

According to Juergen F. Strube, chairman of the board of executive directors of BASF, the sale will also benefit BASF's long-term growth potential. "In recent years, we have thoroughly investigated all conceivable options for the future of our pharmaceutical business and are now convinced that this business has greater chances of success with Abbott, a large, globally operating pharmaceutical manufacturer. The proceeds from the sale give BASF the ability to strengthen its core businesses through investment and focused acquisitions for continued profitable growth."

The transaction is expected to be completed in the first quarter of 2001. PR