Medical products

Brazil’s Viveo to Acquire 3 Medical Products Companies in Expansion Spurt

SAO PAULO, April 12 (Reuters)Brazilian distributor of medicines and medical products Viveo VVEO3.SA has reached an agreement to acquire three companies for a total of 365.5 million reais ($77.86 million) as it pushes for expansion, it said in a securities filing on Tuesday.

The deal includes parenteral nutrition company FAMAP, a supplier of sterile solutions and a distributor of hospital PHD products, Viveo – formerly known as CM Hospitalar SA – said.

Life and FAMAP combined accounted for 58 million reais of earnings before interest, taxes, depreciation and amortization (EBITDA), while PHD is expected to add 17.5 million reais of EBITDA, Viveo added.

Life and PHD are based in the southern city of Porto Alegre, and FAMAP is headquartered in Belo Horizonte. The deal still requires approval from Brazilian antitrust watchdog CADE.

The move comes less than a year after Viveo and its shareholders raised R$2.32 billion in an initial public offering (IPO) that valued the company at R$5.7 billion at the time.

($1 = 4.6944 reais)

(Reporting by Gabriel Araujo; editing by Jason Neely)

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Joan J. Dean

The author Joan J. Dean