South African drugmaker Aspen Pharmacare has agreed to sell its infant formula business to French dairy products manufacturer Lactalis for 12.9 billion rands ($865 million) to focus on core activities.
Aspen aims to focus attention on its core pharmaceutical business, which includes the anesthetics, thrombosis and high potency and cytotoxic portfolios.
Lactalis expects the deal to help it rebuild its baby milk business.
Aspen said that the acquisition will be funded with cash adding that the proceeds will reduce its debt and the deal is expected to close in the next six months.