Perrigo’s $8.6bn acquisition of Elan
US healthcare company, Perrigo, has acquired Elan for $8.6 billion in a deal that will establish further international expansion, strengthen Perrigo’s portfolio and create the opportunity for approximate tax savings of over $150 million.
Ireland-based Elan’s current portfolio includes royalties from multiple sclerosis (MS) treatment Tysabri, which is marked and distributed by Biogen, as well as neuropsychiatric pipeline.
“Through this transaction, Perrigo establishes a diversified platform for further international expansion. We believe this transaction is compelling for Elan shareholders and fully takes into account the value of Elan’s assets, including a large cash balance and a double-digit royalty claim on Tysabri®, a blockbuster product that generated revenues of US$1.6 billion last year and has been growing at a compound annual growth rate of 19%. We believe the combination of Perrigo and Elan will create an industry-leading global healthcare company with the balance sheet liquidity and operational structure to accelerate our growth and capitalize on international market opportunities.”
Joseph C. Papa, Chairman and CEO of Perrigo.
This decision ends what’s been known as a “bitter takeover battle”, in which Elan recently rejected three lower bids from US investment firm Royalty Pharma. The proposed transaction has been unanimously approved by the respective boards and is expected to close by the end of 2013. At the close of the transaction, Perrigo and Elan will be combined under New Perrigo, a new company incorporated in Ireland, where Elan is incorporated today. New Perrigo, which is expected to be called Perrigo Company plc or a variant thereof, will be led by Perrigo’s current leadership team.
“This is an excellent transaction for Elan shareholders and provides them with cash consideration as well as the opportunity to benefit from the potential upside value of the new company. Joe Papa and his team have demonstrated exceptional capability and delivery of results in building a premier healthcare company over the past number of years. We have the confidence in Joe and his leadership team to continue to grow and expand its presence on a global scale.”
Mr. Robert A. Ingram, Chairman of Elan.
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