Hikma Pharmaceuticals, a multinational pharmaceutical group, has agreed to acquire the Egyptian Company for Pharmaceuticals & Chemical Industries (EPCI) from a consortium of shareholders for an aggregate cash consideration of approximately $22.2 million.

The acquisition strengthens Hikma's position in the large and fast growing Egyptian market and adds a complementary portfolio of 35 products in 46 dosage forms and strengths, including three original cephalosporin anti–infective brands for the Egyptian market. The acquisition also adds a dedicated cephalosporin facility and an additional general formulation manufacturing plant in Egypt.

"Since we entered the Egyptian market in 2007, we have been rapidly growing our presence. This acquisition will further accelerate that growth, expanding our product portfolio and adding additional manufacturing capacity and technologies,” said Said Darwazah, CEO of Hikma. “We continue to strengthen our position as the leading regional manufacturer in MENA and to pursue other value–creating acquisition opportunities in the region."

The Egyptian pharmaceutical market is one of the largest and fastest growing MENA markets. According to IMS Health, the private retail market is valued at around $2.3 billion and grew by 10.6% in the 12 months prior to June 2012. Hikma Egypt is currently the seventeenth largest pharmaceutical manufacturer in Egypt, with an estimated market share of 1.6%.

Closing is expected to occur before February 14, 2013, and is conditional on fulfillment of conditions precedent.

HC Securities and Investment, the Cairo–based investment bank, acted as advisor to Hikma on this acquisition.