BARRANQUILLA, Colombia–(BUSINESS WIRE)–Procaps Group, a number one built-in worldwide healthcare and pharmaceutical firm, immediately supplied preliminary estimates of its second quarter 2021 internet revenues for the three months ended June 30, 2021. Along side the preliminary estimates, the Firm additionally supplied a enterprise replace and key milestone bulletins forward of its proposed enterprise mixture with Union Acquisition Corp. II (NASDAQ: LATN, LATNU, LATNW) (“LATN”), a publicly-traded particular goal acquisition firm. Procaps plans to announce its second quarter 2021 monetary outcomes on Thursday, August 12, 2021.
Key Second Quarter Operational Highlights
- Second quarter internet revenues anticipated to extend over 25% versus 12 months in the past interval.
Throughout all 5 strategic enterprise items (Procaps Colombia, Nextgel, CAN, CASAND & Diabetrics) there was a big enhance in demand for Procaps services and products.
- Procaps Colombia and CASAND had the very best progress on account of each demand throughout the board on a wide range of merchandise, each Rx and OTC, and new product launches which have led to a rise in market share good points.
- Diabetrics skilled an analogous progress within the second quarter 2021 y-o-y because it did within the first quarter 2021, benefiting from gross sales from the launch of a brand new insulin.
- Medical Specialties enterprise line demonstrated progress in gross sales because of larger demand of anesthetic merchandise from intensive care items in hospitals.
- CEO Ruben Minski joined the Colombian Vice President led authorities and personal sector delegation to conduct conferences with American enterprise and public coverage leaders with the target of strengthening business ties, investor confidence and relations between Colombia and the US.
- Reddit Investor Interview with Union Acquisition Corp. II CEO Kyle Bransfield
- Submitting of the registration assertion on Type F-4 in June of 2021 in reference to Procaps Group’s proposed enterprise mixture with Union Acquisition Corp. II.
Anticipated Milestones to Completion of Enterprise Mixture Embody:
- Second quarter 2021 monetary outcomes – Thursday, August 12, 2021
- Digital investor and analyst day deliberate for Thursday, August 19, 2021. Firm to showcase senior management group and key progress initiatives
- LATN Shareholder vote – September 2021
- Enterprise mixture shut and itemizing on Nasdaq Capital Market below new ticker image “PROC” – roughly finish of September 2021
“Our sturdy monetary efficiency has continued into the second quarter of 2021 as evidenced by our internet income progress of over 25% year-over-year,” mentioned Ruben Minski, Procaps Founder, Chairman and Chief Govt Officer. “4 out of 5 of our enterprise items skilled double-digit income progress primarily because of the fast ramp-up of recent product launches and continued roll-out into new geographies with measured enhancements to our stock rotations.
“As we glance to the longer term when it comes to progress and collaborations, I just lately joined the Colombian Vice President and Overseas Minister Marta Lucía Ramírez and a gaggle of presidency and private-sector officers to fulfill with American enterprise and public coverage leaders to strengthen business ties, investor confidence and relations between Colombia and the US. Belief and a collaborative relationship between the federal government and the non-public sector have been key components in our internationalization technique and progress in new markets, and the adoption of recent requirements for various enterprise sectors via the implementation of public insurance policies that help the sustainability of personal corporations in addition to the lively and important contribution of the non-public sector in several areas resembling employability and innovation. These initiatives generate an unequivocal engine for sustainable growth in Colombia and a blueprint for Procaps’ long-term progress mannequin.
“In summation, we’re very proud to have the ability to encourage different organizations and entrepreneurs within the area to dare and search to beat new markets and undertake company governance greatest practices that not solely generate success and well-being for the members of the corporate but in addition contribute to the development of a much bigger base of good-quality and sustainable jobs.
“We look ahead to offering a full replace on our second quarter monetary outcomes anticipated to be reported in mid-August together with an replace to our full 12 months 2021 internet income and adjusted EBITDA steerage. I’m additionally comfortable to report that our enterprise mixture with UAC II stays on monitor and following our reported Q2 outcomes, we are going to host our first investor and analyst day introducing our senior management group together with our strategic progress initiatives,” concluded Minski.
About Proposed Enterprise Mixture with Union Acquisition Corp. II
Completion of the enterprise mixture, which is anticipated to shut within the third quarter of 2021, is topic to approval by LATN shareholders and different customary closing circumstances, together with the Registration Assertion being declared efficient by the SEC. The mixed firm shall be led by Ruben Minski, Procaps Group Founder, Chairman & CEO. Upon closing of the enterprise mixture (assuming not one of the LATN shareholders redeem any of their LATN odd shares in reference to the approval of the enterprise mixture and together with the redemption of sure shares held by IFC), present Procaps Group shareholders are anticipated to carry roughly 76% of the mixed firm, which shares shall be topic to sure lock-up preparations.
Institutional buyers have dedicated to an upsized non-public funding in public fairness (“PIPE”) of $100 million in odd shares of LATN, which shall be transformed into odd shares of the mixed firm upon the closing of the enterprise mixture. The PIPE will shut concurrently with the enterprise mixture. Topic to any redemptions by LATN shareholders, there’s roughly $136.9 million in money presently held in LATN’s belief account. It’s anticipated that the mixed firm could have roughly $236.9 million in gross money proceeds (earlier than transaction-related bills and the redemption of sure shares held by IFC) to fund natural progress via capability growth, plant enhancements, working capital investments, e-Well being platform enhancements and R&D bills, inorganic progress through accretive acquisitions and the redemption of sure shares from IFC.
Whereas the Registration Assertion has not but change into efficient and the data contained therein is topic to alter, it gives vital details about Procaps Group’s enterprise and operations, proposed enterprise mixture with Union Acquisition Corp. II and the proposals to be thought-about by the LATN shareholders.
Extra details about the transaction together with the Registration Assertion on Type F-4 may be seen right here: https://investor.procapsgroup.com.
Proposed Enterprise Mixture Highlights
- Procaps Group is a family-owned Latin American pharmaceutical firm established over 40 years in the past that has grown into a number one built-in pharma firm with a presence in 13 nations and product attain in 50 markets modernizing oral drug supply expertise and manufacturing capabilities.
- Procaps Group’s state-of-the-art manufacturing capabilities present modern supply applied sciences protected by an intensive IP moat and supported by trade accolades resembling the primary FDA-approved pharmaceutical plant in South America for promoting Rx merchandise into the U.S.
- Procaps Group immediately is the most important pharmaceutical contract growth and manufacturing group “CDMO” in Latin America and prime 3 globally when it comes to quantity of softgel manufacturing capability.
- As of December 31, 2020, Procaps Group employed over 4,700 individuals throughout 13 nations, and has a powerful historical past and deal with ESG ideas together with resource-saving insurance policies, HR and social packages and company insurance policies.
- Procaps Group generated internet income of $331 million, Adjusted EBITDA of $85 million and Adjusted EBITDA on a relentless foreign money foundation of $93 million in 2020 and is on monitor to achieve $397 million in internet income and $105 million in Adjusted EBITDA in 2021. The adjusted EBITDA figures don’t embrace any one-time add backs particularly for provisions required by IFRS. Procaps Group expects full-year Adjusted EBITDA margin growth from 18% in 2019 to 26% in 2021 with sturdy constructive free money move. Roughly 44% of Procaps Group income in 2020 was USD-denominated.
- Transaction represents the primary ever Latin American targeted SPAC to incorporate a completely dedicated and over-subscribed SPAC-related odd share PIPE.
- Transaction is anticipated to allow additional funding in progress and new product classes and positions Procaps Group to capitalize on favorable regional dynamics via natural progress in B2B & B2C segments.
- Transaction additionally positions the Firm to drive inorganic progress via a roll-up technique targeted on mid-sized corporations within the area. The Firm’s M&A plan will deal with pharma and CDMO targets, in addition to the chance for transformational acquisitions sooner or later.
- Transaction represents enticing entry valuation at 10.75X estimated 2021 EV/EBITDA a number of versus international CDMO and pharmaceutical trade comparable corporations.
- Mixed firm to have an implied preliminary enterprise worth of roughly $1.1 billion, and anticipated gross money proceeds of $236.9 million (earlier than transaction-related bills and the redemption of sure shares held by IFC) after closing, together with a $100 million fully-committed PIPE.
- Mixed firm strategically positions Procaps Group as a differentiated Latin American built-in pharma firm leveraging a proprietary and confirmed M&A method that has the potential to ship important Adjusted EBITDA progress and margin growth.
- The PIPE was raised from a broad group of Latin American buyers, healthcare buyers and thought leaders. These embrace pan-regional funds resembling Moneda Asset Administration, in addition to Chilean-based Consorcio Seguros, amongst a number of different unnamed international and healthcare buyers.
- Transaction is anticipated to shut within the third quarter of 2021, with the mixed firm anticipated to be listed on the Nasdaq Capital Market below the image “PROC.”
Procaps Group Enterprise and Operational Highlights
Main regional pharmaceutical participant with international attain and completed administration group
- Based in 1977 by the Minski Household with 4,700+ workers throughout 13 nations as of December 31, 2020
- Web income of $331 mm in 2020 and projected $397 mm for 2021
- Progressive supply applied sciences remodel branded generics into differentiated merchandise
In-house R&D capabilities driving enticing progress alternatives
- Avenues for progress with a sturdy pipeline and a excessive product renewal charge
- Concentrate on differentiated, excessive margin, and excessive barrier-to-entry merchandise
Main pharmaceutical integral CDMO specialised in softgels
- A most well-liked provider to the worldwide pharmaceutical corporations
- Prime 3 international participant by softgel manufacturing capability, with sturdy progress potential and long-standing respected shoppers together with Glaxo, Pfizer and Abbott
Proprietary portfolio of branded Rx and OTC merchandise
- Sturdy proprietary portfolio with sturdy progress charges
- 99% of product portfolio is proprietary
Positioned to capitalize on favorable regional dynamics
- LatAm’s pharma gross sales anticipated to outperform international progress
- Healthcare expenditure anticipated to achieve a 7% CAGR from 2020 – 2022
- LatAm’s ageing inhabitants anticipated to extend boosting demand for pharma
Robust historical past and deal with ESG Ideas
- Useful resource saving polices, HR & social packages and governance are vital to Procaps Group
About Procaps Group
Procaps Group is a developer of pharmaceutical and nutraceutical options, medicines, and hospital provides that attain greater than 50 nations in all 5 continents. Procaps has a direct presence in 13 nations in Latin America and, as of December 31, 2020, had greater than 4,700 collaborators working below a sustainable mannequin. Procaps develops, manufactures, and markets over-the-counter (OTC) and pharmaceuticals, dietary dietary supplements and high-potency medical options. For extra info, go to www.procapsgroup.com or Procaps Group’s investor relations web site investor.procapsgroup.com, which may also comprise a hyperlink to the Registration Assertion. The Registration Assertion consists of audited consolidated monetary statements of Procaps Group as of and for the fiscal years ended December 31, 2020 and 2019.
About Union Acquisition Corp. II.
Union Acquisition Corp. II, led by Kyle Bransfield, is a Cayman Islands exempted firm integrated as a clean verify firm for the aim of getting into right into a merger, share alternate, asset acquisition, share buy, recapitalization, reorganization or different comparable enterprise mixture with a number of companies or entities. For extra info, please click on here.
Necessary Data Concerning the Merger and The place to Discover It
In reference to the proposed enterprise mixture, Procaps Group, S.A. (“Holdco”), a subsidiary of Crynssen Pharma Group Restricted (“Procaps Group”) that can change into the holding firm of LATN and Procaps Group as of the closing of the proposed enterprise mixture, filed a Registration Assertion on Type F-4 (the “Type F-4”) with the U.S. Securities and Change Fee (the “SEC”) that features a proxy assertion of LATN that additionally constitutes a prospectus of Holdco. LATN, Procaps Group and Holdco urge buyers, stockholders and different individuals to learn the Type F-4, together with the preliminary proxy assertion/prospectus and amendments thereto and the definitive proxy assertion/prospectus and paperwork integrated by reference therein, in addition to different paperwork filed with the SEC in reference to the proposed transaction, as these supplies will comprise vital details about Procaps Group, Holdco, LATN and the proposed enterprise mixture transaction. After the Registration Assertion is said efficient, the definitive proxy assertion/prospectus included within the Registration Assertion shall be mailed to shareholders of LATN as of a file date to be established for voting on the proposed enterprise mixture. As soon as out there, shareholders may also be capable to get hold of a replica of the Type F-4, together with the proxy assertion/prospectus, and different paperwork filed with the SEC with out cost, by directing a request to: BTG Pactual US Capital, LLC, Consideration: Prospectus Division, E mail: OL-BTGPactual-ProspectusDepartment@btgpactual.com. The preliminary and definitive proxy assertion/prospectus included within the registration assertion, as soon as out there, may also be obtained, with out cost, on the SEC’s web site (www.sec.gov).
Individuals within the Solicitation
LATN and Procaps Group and their respective administrators and government officers could also be thought-about members within the solicitation of proxies with respect to the proposed enterprise mixture described on this press launch below the foundations of the SEC. Details about the administrators and government officers of LATN is about forth in LATN’s remaining prospectus filed with the SEC pursuant to Rule 424(b) of the Securities Act of 1933, as amended (the “Securities Act”) on October 17, 2019, and is obtainable freed from cost on the SEC’s web site at www.sec.gov or by directing a request to: Union Acquisition Corp. II, 1425 Brickell Ave., #57B, Miami, FL 33131. Data concerning the individuals who might, below the foundations of the SEC, be deemed members within the solicitation of the LATN shareholders in reference to the proposed enterprise mixture shall be set forth within the Registration Assertion filed with the SEC. These paperwork may be obtained freed from cost from the sources indicated above.
This press launch incorporates “forward-looking statements.” Ahead wanting statements could also be recognized by means of phrases resembling “forecast,” “intend,” “search,” “goal,” “anticipate,” “imagine,” “anticipate,” “estimate,” “plan,” “outlook,” and “undertaking” and different comparable expressions that predict or point out future occasions or tendencies or that aren’t statements of historic issues. Such forward-looking statements embrace projected monetary info, together with anticipated internet income enhance for the three months ended June 30, 2021; 2021 internet income, Adjusted EBITDA and Adjusted EBITDA margin steerage; the anticipated gross money proceeds from the Procaps Group enterprise mixture and its results on growth; expectations associated to elevated demand and market share for sure Procaps Group services and products; expectations referring to the expansion of Procaps Group’s B2B and B2C enterprise, capability growth, plant enhancements, working capital investments, e-health platform and R&D bills; expectations associated to potential M&A acquisitions; the closing of the enterprise mixture transaction; and expectations referring to Procaps Group’s capability to put money into progress via natural and inorganic progress. Such forward-looking statements with respect to revenues, earnings, efficiency, methods, synergies, prospects, and different facets of the companies of LATN, Procaps Group, or Holdco, previous to or following the completion of any proposed enterprise mixture, are based mostly on present expectations which can be topic to dangers and uncertainties. A variety of components may trigger precise outcomes or outcomes to vary materially from these indicated by such forward-looking statements. These statements contain dangers, uncertainties and different components that will trigger precise outcomes, ranges of exercise, efficiency or achievements to be materially completely different from the data expressed or implied by these forward-looking statements. Though we imagine that we’ve got an inexpensive foundation for every forward-looking assertion contained on this press launch, we warning you that these statements are based mostly on a mixture of details and components presently identified by us and our projections of the longer term, about which we can’t be sure. Ahead-looking statements on this press launch embrace, however will not be restricted to: (1) the lack to finish the transactions contemplated by the proposed enterprise mixture; (2) the lack to acknowledge the anticipated advantages of the proposed enterprise mixture, which can be affected by, amongst different issues, competitors, and the power of the mixed enterprise to develop and handle progress profitably; (3) the lack to efficiently retain or recruits officers, key workers, or administrators following the proposed enterprise mixture; (4) results on LATN’s public securities’ liquidity and buying and selling; (5) the market’s response to the proposed enterprise mixture; (6) the dearth of a marketplace for LATN’s securities; (7) LATN’s and Procaps Group’s monetary efficiency following the proposed enterprise mixture; (8) prices associated to the proposed enterprise mixture; (9) adjustments in relevant legal guidelines or laws; (10) the chance that LATN or Procaps Group could also be adversely affected by different financial, enterprise, and/or aggressive components; and (11) different dangers and uncertainties indicated infrequently in paperwork filed or to be filed with the SEC by LATN. We can not guarantee you that the forward-looking statements on this press launch will show to be correct. These forward-looking statements are topic to plenty of important dangers and uncertainties that might trigger precise outcomes to vary materially from anticipated outcomes, together with, amongst others, the power to finish the enterprise mixture because of the failure to acquire approval from LATN shareholders or fulfill different closing circumstances within the enterprise mixture settlement, the incidence of any occasion that might give rise to the termination of the enterprise mixture settlement, the power to acknowledge the anticipated advantages of the enterprise mixture, the end result of any authorized proceedings which may be instituted towards LATN or Procaps Group following announcement of the proposed enterprise mixture and associated transactions, the affect of COVID-19 on Procaps Group’s enterprise and/or the power of the events to finish the enterprise mixture, the power to acquire or preserve the itemizing LATN’s odd shares on Nasdaq following the proposed enterprise mixture, prices associated to the proposed enterprise mixture, adjustments in relevant legal guidelines or laws, the chance that LATN or Procaps Group could also be adversely affected by different financial, enterprise, and/or aggressive components, and different dangers and uncertainties, together with these to be included below the header “Threat Elements” within the Type F-4 filed with the SEC and people included below the header “Threat Elements” within the remaining prospectus of LATN associated to its preliminary public providing, in addition to LATN’s different filings with the SEC. Ought to a number of of those dangers or uncertainties materialize, or ought to any of our assumptions show incorrect, precise outcomes might differ in materials respects from these projected in these forward-looking statements. We undertake no obligation to replace or revise any forward-looking statements, whether or not on account of new info, future occasions or in any other case, besides as could also be required below relevant securities legal guidelines. Accordingly, you shouldn’t put undue reliance on these statements.
This press launch just isn’t a proxy assertion or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed enterprise mixture and shall not represent a suggestion to promote or a solicitation of a suggestion to purchase any securities nor shall there be any sale of securities in any state or jurisdiction wherein such supply, solicitation, or sale can be illegal previous to registration or qualification below the securities legal guidelines of any such state or jurisdiction. No supply of securities shall be made besides via a prospectus assembly the necessities of the Securities Act.