Community Corner

Actavis Acquires Allergan Inc. For $66B

The Boards of Directors for both of the two pharmaceutical companies unanimously approved the transaction.

Actavis plc of Dublin, New Jersey, has agreed to acquire Allergan Inc. of Irvine for around $66 billion, the two pharmaceutical companies announced today.

Actavis and Allergan said they’ve entered into a definitive agreement under which Actavis will acquire Allergan for a combination of $129.22 in cash and 0.3683 Actavis shares for each share of Allergan common stock.

“Based on the closing price of Actavis shares on November 14, 2014, the transaction is valued at approximately $66 billion, or $219 per Allergan share,” a statement said. “The combination will create one of the top 10 global pharmaceutical companies by sales revenue, with combined annual pro forma revenues of more than $23 billion anticipated in 2015.”

Find out what's happening in Lake Forestwith free, real-time updates from Patch.

The transaction was unanimously approved by the Boards of Directors of both companies.

“This acquisition creates the fastest growing and most dynamic growth pharmaceutical company in global healthcare, making us one of the world’s top 10 pharmaceutical companies,” said Actavis CEO and President Brent Saunders.

Find out what's happening in Lake Forestwith free, real-time updates from Patch.

“The combined company will have a strong balance sheet, growing product portfolios and broad commercial reach extending across 100 international markets,” he said.

Saunders said he expects the combined entity to generate cash flow of more than $8 billion in 2016 and substantial growth thereafter, “which will enable the rapid repayment of debt.”

The head of Allergan was equally bullish.

“Today’s transaction provides Allergan stockholders with substantial and immediate value, as well as the opportunity to participate in the significant upside potential of the combined company,” said Allergan Chairman and CEO David E. I. Pyott. “Together with Actavis, we are poised to extend the Allergan growth story ...”

The integration of the two companies will be led by the senior management teams of both companies, with merger planning to begin immediately in order to transition rapidly to a single company, the statement said.

The combined company will be led by Saunders, and Paul Bisaro of Actavis will remain Executive Chairman of the Board. Additionally, two members of the Allergan Board of Directors will be invited to join the Actavis Board of Directors following the completion of the transaction, the statement said.

—City News Service

Image: Wikipedia


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here