Procaps Group S.A. (NasdaqGM:PROC) entered into an agreenment to acquire Grupo Farmacéutico Somar, Sociedad Anónima Promotora de Inversión de Capital Variable from Advent International Corporation for approximately $340 million on May 17, 2022. Under the terms, Procaps will pay the consideration in cash of $303 million, will issue 3.08137 million shares and will pay an earnout payment of $15 million subject to Grupo Farmacéutico Somar achieve certain gross profit targets in 2022. Procaps expects to fund the cash portion of the consideration with a combination of cash from its balance sheet and incremental debt. In connection with the transaction, Procaps has secured a fully committed bridge credit facility with Bank of America, JP Morgan and Morgan Stanley. In 2021, Grupo Farmacéutico Somar generated revenues of $183.8 million and EBITDA of $32.2 million. The deal is subject to closing conditions, including the approval by the Federal Economic Competition Commission (COFECE) in Mexico. The transaction is expected to close in the fourth quarter of 2022. On October 3, 2022, Procaps Group, S.A. received approval from the Mexican antitrust authority (Comisión Federal de Competencia Económica de México). Morgan Stanley & Co. LLC acted as financial advisor and Greenberg Traurig, LLP acted as legal advisor to Procaps Group. S. Todd Crider, Juan M. Naveira, Russell S. Light, Peter Guryan, Steven R. DeLott, Lori E. Lesser, Michael Vernace, Tristan Brown of Simpson Thacher & Bartlett LLP acted as legal advisor to Advent International Corporation in this transaction.

Procaps Group S.A. (NasdaqGM:PROC) cancelled the acquisition of Grupo Farmacéutico Somar, Sociedad Anónima Promotora de Inversión de Capital Variable from Advent International Corporation on January 3, 2023.