Endo International plc will acquire privately held Par Pharmaceutical Holdings Inc. from TPG in a transaction valued at $8.05 billion, including assumption of Par debt. The combination will create a leading specialty pharmaceutical company with a generics business that is one of the industry's fastest growing and among the top five as measured by U.S. sales, Endo says. It will also help drive long-term double-digit revenue growth for Endo.
The purchase price will consist of about 18 million shares of Endo equity and $6.50 billion cash consideration to Par shareholders. Endo has secured fully committed financing from Deutsche Bank and Barclays to fund the cash consideration. The transaction is expected to close in the second half of 2015.
"Our generics business, Qualitest, continues to be an extremely attractive and effective growth driver for Endo," said Rajiv De Silva, president and CEO of Endo. "This transaction with Par builds upon our generics growth, adding a strong portfolio of high barrier-to-entry and attractive gross margin products while also transforming Endo, creating a powerful corporate platform for future growth and strategic M&A. We believe the acquisition of Par underscores the continued execution of Endo's value-driven M&A strategy and helps deliver on our goal of achieving double-digit revenue growth for the overall business over the long-term."
"This is an exciting time of growth and opportunity in the generics and specialty pharmaceutical arenas," said Paul Campanelli, CEO of Par Pharmaceutical. "Par Pharmaceutical is committed to significantly expanding our scope, capacity and capabilities to realize the maximum value of our rich and diversified product portfolio and R&D pipeline. We believe our combination with Endo best positions us to do so. We share Endo's goal of developing and commercializing generic drugs in areas of greatest revenue potential, complex formulations and longer life cycles."
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