Mylan NV exercised an option to acquire Aspen Pharmacare Holdings Ltd.'s portfolio of prescription and over-the-counter products in Australia and New Zealand for up to A$188 million.

Under the deal, Mylan will acquire the portfolio from Aspen Global Inc. and Aspen's Australian subsidiaries. The transaction is part of a December 2018 agreement between the two companies on the distribution of certain prescription and over-the-counter products in Australia and New Zealand.

Canonsburg, Pa.-based generics-maker Mylan will pay A$93 million by May 29, the additional A$30 million in January 2020 and up to A$65 million in September 2020. The final payment is subject to the satisfaction of certain conditions by Aspen.

The transaction's proceeds will be used by Aspen Pharmacare to reduce its gearing.

South Africa-based Aspen Pharmacare said the sale is in accordance with its ongoing portfolio management strategy — acquiring value-enhancing products and divesting noncore assets.