Tom Lavell Frankfurt
ENDO International agreed yesterday to buy Par Pharmaceutical Holdings from investment firm TPG Capital in a deal valued at $8.05 billion (R94.6bn), two months after dropping an effort to purchase Salix Pharmaceuticals.
The US-Irish drugmaker planned to acquire Par with 18 million Endo shares, valued at $1.55bn, and $6.5bn in cash, and would assume Par’s debt, the companies said in a statement yesterday. The takeover would create a generic drugs business that was among the top five in US sales, the companies said and would boost Endo’s earnings in the first year.
The purchase “builds upon our generics growth, adding a strong portfolio of high barrier-to-entry and attractive gross margin products”, Endo chief executive Rajiv De Silva said.
Endo said it was seeking a capital structure that would allow for more acquisitions in the future.
Par had almost 100 products, including oral and injectable drugs, and a “solid pipeline”, the firms said.
The purchase is expected to be completed in the second half of the year. – Bloomberg