Fertin Pharma

History

2021: Philip Morris bought Fertin Pharma for $813.1 million

At the end of June 2021, it became known that Philip Morris acquired the developer and manufacturer of nicotine gum Fertin Pharma. The value of the transaction, as reported in a press release, amounted to $813.1 million.

Fertin Pharma is a private company with over 850 employees and businesses in Denmark, Canada and India. This company specializes in the research, development and production of chewing gums, thinnable tablets and other solid oral nicotine delivery systems that are used for nicotine replacement therapy (NRT). The company and its employees bring scientific experience and new technologies to the development of innovative solutions, stimulating the growth of the above categories of products in various areas of business. In 2020, Fertin Pharma's net revenue amounted to about $160 million.

Philip Morris acquired Fertin Pharma for $813.1 million

The acquisition of Fertin Pharma will be a significant step forward on our path to creating a smokeless future, "said Philip Morris CEO Jacek Olczak.

He noted that Fertin's diverse portfolio of technologies, evolving business structure and world-class experience will enrich the innovative portfolio and capabilities of Philip Morris, allowing the company to move to new production. The company intends to receive by 2025 more than 50% of net revenues from non-cigarette products and at least $1 billion from the sale of non-nicotine products.

At the beginning of 2021, Fertin Pharma was owned by the global investment organization EQT and Bagger-Sørensen & Co. Upon completion of the transaction, Fertin Pharma will become a wholly owned subsidiary of Philip Morris, which will finance the acquisition with available cash. Closing of the transaction is expected in the fourth quarter of 2021, subject to approval by the relevant regulatory authorities. Philip Morris believes that the impact of the acquisition on the company's profit in 2021 will be insignificant.^[1]

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