Abbott Laboratories Inc said it plans to widen its array of nutritional brands in India by paying $130 million for the nutrition businesses of Wockhardt Ltd, certain Wockhardt subsidiaries, and Carol Info Services Ltd.
The suburban Chicago healthcare company said the cash deal for the businesses, which have 600 employees, is expected to close in the second half of 2009 and is not expected to affect its full-year profit forecast.
Abbott, which has operated in India for a century and has 1,500 employees there, already sells a number of nutritional products in the world's second-most-populous country. They include Abbott's infant formula Isomil, PediaSure for children ages 1 to 13, adult nutrition brand Ensure, and Glucerna nutrition products for diabetics.
We will sell their brands, in addition to our own, Abbott spokeswoman Melissa Brotz said, adding that the products being acquired had 2008 sales of less than $40 million.
Abbott said Wockhardt, based in Mumbai, India, has the second-biggest line of pediatric nutrition products in the country. The products include Farex, Dexolac and Nusobee infant formulas and Farex weaning cereal.
Wockhardt's adult protein supplement, Protinex, is the segment leader, Abbott said.
The deal includes nutrition manufacturing facilities located in Lalru and Jagraon, India.
Abbott said one facility is owned by Carol Info, a contract manufacturer based in India.
Shares of Abbott rose 1.2 percent to $45.56 in morning trading on the New York Stock Exchange. (Reporting by Ransdell Pierson; editing by John Wallace)