UnitedHealth to acquire Brazil-based insurer for $4.9 bln
Largest health insurance company namely UnitedHealth Group Inc has agreed to make payment of about $4.9 billion to buy 90% of Brazil-based insurer and hospital chain Amil Participacoes SA.
This will give UnitedHealth a stake in the world’s second biggest emerging economy. The agreement values Amil Participacoes at 30.75 reais ($15.13) per share, a 50% increase over its price a month ago.
Amil’s Founder Edson Bueno, will remain as Chief Executive Officer and Chairman of the Brazil operation. He will join UnitedHealth’s board, Minnesota-based insurer said.
The insurers in U.S. have been on a buying spree in the past 12 months, snapping up small rivals as they prepare for tighter profit margins under President Barack Obama’s healthcare overhaul.
The private insurance membership has increased 14% over three years even as the enrollments in the U.S. dwindled.
Stephen Hemsley, United Health’s Chief Executive Officer said, “UnitedHealth will buy Amil in a two-step process over next year, with Brazilian tax benefits reducing the effective cost of buying by about $600 million.”
Following Brazilian regulatory approval, in the fourth quarter, UnitedHealth will acquire about 60% of Amil’s outstanding shares from the management and controlling shareholders.
Further, in the first half of next year, it will be making a public offer for the remaining 30%. Amil’s Bueno has agreed to invest about $470 million in UnitedHealth stock and hold the shares for five years.
The company also stated, it had earnings of atleast $1.45 for 2012’s third quarter.
Mr. Hemsley said, “This investment is really around growth, the pursuit of a dramatic new market.”
United Health Group is a health care company that serves more than 75 million people. The company offers a comprehensive range of products and services through its health benefits and health services businesses.
Amil is the biggest Latin American healthcare company and the largest medical private company of Brazil. It offers wide range of healthcare plans for company of all sizes and also plans for individuals of all income segments. Besides, it is listed in BM&F Bovespa since 2007, and is also the largest Brazilian medical company by market value.
Bachem turns 50 - a timeline
Bachem, a supplier to pharmaceutical and biotechnology companies worldwide, is celebrating its 50th anniversary this month. We take a look at the Swiss company's history.
1971 - beginnings
Bachem is founded by entrepreneur Peter Grogg in Liestal, a small town near Basel in Switzerland. Grogg started the firm with just two employees, and with a focus on peptide synthesis - peptides are composed of amino acids that have a variety of functions treating health conditions such as cancer and diabetes.
1977 - 1981 - early growth
Bachem moves its headquarters to the Swiss town of Bubendorf, with eight employees. In 1978 the company produces peptides for use in medicines for the first time. In 1981 production capacity triples and the workforce grows to 150.
1987 - 1996 - worldwide expansion
The company expands into the US with Bachem Bioscience, Inc. in Philadelphia. To strengthen its presence in Europe, Bachem opens sales and marketing centres in Germany in 1988.
Further sales centres open in France in 1993. By 1995 the company employs 190 people. In 1996 it acquires the second largest manufacturer of peptides in the world and forms Bachem California with a site in Torrance.
1998 - 2003 - Bachem goes public
Bachem company goes public and lists shares on the Swiss Stock Exchange. Further acquisitions include Peninsula Laboratories, Inc, based in California, and Sochinaz SA, a Swiss-based manufacturer of active pharmaceutical ingredients. By 2001, the company has 500 employees and sales reach 141 million CHF.
In 2003 the organisation is given a new legal holding structure to support its continued growth, which remains in place to this day.
2007 - 2013 - acquisitions
Bachem acquires a brand by Merck Biosciences for ready-to-use clinical trial materials and related services.
In 2013, together with GlyTech, Inc. Bachem announces the development of a new amino acid that can help to treat multiple sclerosis, with a world market of more than $4 billion.
In 2015 it acquires the American Peptide Company (APC), which becomes integrated into Bachem Americas.
2016 - 2019 - a global leader
In 2016 the group opens a new building dedicated to R&D projects and small series production in Bubendorf. With a total of 1,022 employees, the workforce exceeds the 1,000 mark for the first time in the company’s history. Sales are over the 200 million mark for the first time at 236.5 million CHF.
Bachem expands into Asia with the establishment of a new company in Tokyo called Bachem Japan K.K.
By 2019 Bachem has a growing oligonucleotide portfolio - these are DNA molecules used in genetic testing, research, and forensics. It is hoped this will become a significant product range in the future.
2020 - COVID-19
Despite the COVID-19 pandemic, Bachem secures its supply of active ingredients, and even increases it in critical areas. Sales exceed the 400 million Swiss franc mark for the first time, and 272 new employees are hired.
2021 - a milestone anniversary
Bachem celebrates its 50th anniversary and position as a global leader in the manufacture of peptides. While it remains headquartered in Bubendorf, the company employs 1,500 people at six locations worldwide. In the next five years there are plans to continue expanding.
Commemorating the company's anniversary, Kuno Sommer, Chairman of the Board of Directors, said: "Bachem's exceptional success story from a small laboratory to a global market leader is closely linked to Peter Grogg's values, and has been shaped by innovation, consistent quality and cost awareness, as well as by entrepreneurial vision."