Lately, the global healthcare sector has been witnessing a considerable increase in acquisition deals, the newest being KKR & Co. L. P’s (KKR) minority stake acquisition in Arbor Pharmaceuticals. The company will be acquiring the stake in Arbor through its North America XI private equity fund.
Notably, neither KKR nor Arbor disclosed the financial terms of the deal, which is expected to close by the first quarter of 2015. Further, the acquisition, subject to customary closing conditions, is currently awaiting regulatory approvals.
Arbor headquartered in Atlanta, GA, presently markets 17 products for the cardiovascular, hospital and pediatric industries, along with roughly 40 others in the pipeline. It also trades in branded and generic products.
We believe that the latest deal would help Arbor work toward providing quality products to its patients, thereby ensuring future growth and its gradual development into a fully-integrated pharmaceutical company.
As a global investment firm, KKR has been investing in healthcare companies since a long time. The pharmaceuticals and medicine sector shows a steady uptrend and so Arbor, with its efficient management team and extensive product line, holds good growth prospects. Hence, it is a fruitful investment option for KKR to earn attractive returns.
KKR had also acquired minority stake in Coherus BioSciences Inc.(CHRS) earlier in May 2014. Other investments by the company include Alliance Boots and PRA Heath Sciences (PRAH).
KKR currently sports a Zacks Rank #1 (Strong Buy). Monroe Capital (MRCC) is a better-ranked stock in the finance space with a Zacks Rank #1(Strong Buy).
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