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Philip Morris To Acquire Denmark's Fertin Pharma For $820 Mln - Quick Facts

Philip Morris International Inc. (PM) announced Thursday that it has entered into an agreement to acquire Fertin Pharma A/S for an enterprise value of 5.1 billion Danish kroner or approximately $820 million.

Fertin Pharma is currently owned by the global investment organization EQT and Bagger-Sorensen & Co.

The deal is expected to close in the fourth quarter of 2021, subject to approval by the appropriate regulatory authorities.

PMI expects the impact of the acquisition on its full-year 2021 adjusted earnings per share to be immaterial.

Upon the completion of the acquisition, Fertin Pharma will become a wholly owned subsidiary. The company will fund the deal with existing cash.

Fertin Pharma is a privately held developer and manufacturer of innovative pharmaceutical and well-being products based on oral and intra-oral delivery systems. It has more than 850 employees with operations in Denmark, Canada, and India. In 2020, Fertin Pharma generated net revenues of 1.1 billion kroner or around $160 million.

Philip Morris expects the acquisition of Fertin Pharma to be a significant step in its smoke-free portfolio. The deal would provide speed and scale in oral delivery to support the company's 2025 goals of generating more than 50% of net revenues from smoke-free products and at least $1 billion from products beyond nicotine.

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