Fagron heads for best day in 6 months after strategic move in the U.S.

Fagron NV

02/02/2022 08:31

** Shares in Fagron  FAGRO.BR  jump more that 3%, heading
for their best day since August, after the Belgian healthcare
company announced the acquisition of Letco and divestment of
non-core activities in the U.S.
    ** It acquired Letco, a supplier of pharmaceutical raw
materials, supplies and equipment for $34 millions and sold 80%
of its contract manufacturing business unit  urn:newsml:reuters.com:*:nASN00235H
    ** "We applaud both the acquisition as well as the
divestment for Fargon, who will pay approximately 7.7xEBITDA for
Letco", KBC Securities says 
    ** The U.S. is already going strong for Fagron, thus it
makes sense to continue to strengthen it’s activities in this
region, it adds
    ** The brokerage maintains its "buy" rating on Fagron,
seeing it "currently undervalued"
    ** The group currently trades about 17.6% below KBC's target
price at 19.50 euros

 (Reporting by Kate Entringer)
 ((kate.entringer@thomsonreuters.com))