LONDON — Hikma Pharmaceuticals PLC, a fast growing multinational pharmaceutical group, plans to acquire Roxane Laboratories from Boehringer Ingelheim in a deal valued at $2.65 billion.

Hikma said the agreement stands to transform its position in the U.S. generic drug market, establishing the company as the sixth-largest generics maker by revenue. The addition of Roxane will bring 88 highly differentiated products in specialized and niche segments of the market.

“Roxane’s impressive portfolio, attractive pipeline and R&D expertise, focusing on higher value, niche and differentiated products, will create a platform for sustainable long-term growth,” Hikma chief executive officer Said Darwazah said in a statement. “The acquisition also significantly expands our manufacturing capacity and technological capabilities. Roxane has an excellent team of highly skilled employees, and we are very excited about the value they will bring to Hikma.

“’I am also very pleased to be further strengthening our relationship with Boehringer Ingelheim, building on the acquisition of Bedford Laboratories which we made in 2014,’’ Darwazah added.

Under the terms of the agreement, Hikma will purchase 100% of the stock of Roxane, and Boehringer Ingelheim will receive cash and stock in Hikma. The deal is valued at approximately $2.65 billion in upfront payments plus milestones and royalties related to certain assets in Roxane’s development pipeline. Boehringer Ingelheim will have a 16.71% equity stake in Hikma.

At the end of last year, Boehringer Ingelheim assessed its portfolio of businesses and determined that the company would explore strategic options for its generic pharmaceuticals business.

“This is a great opportunity for Roxane to continue to build on its position in the global generics market as part of a fast-growing company that has a primary focus on generics. Boehringer is confident that this transaction can better support the already successful Roxane business to realise its growth potential, domestically and internationally,” stated Andreas Barner, chairman of the board of managing directors at Boehringer Ingelheim. “Through this agreement, Boehringer Ingelheim will have a vested interest in Hikma and its significant potential, while focusing on growing our global core businesses as a research-driven pharmaceutical company.”

The transaction is expected to close in the fourth quarter of this year, pending shareholder and regulatory approvals.

“Roxane is highly complementary to our existing U.S. business,” commented Michael Raya, CEO of West-Ward, Hikma’s wholly-owned U.S. subsidiary. “Today, we are a market leader in generic injectables, with a large and increasingly differentiated product portfolio. The acquisition of Roxane will significantly strengthen our noninjectables business, bringing a broad and diversified noninjectables portfolio, strong R&D capabilities, and well-invested, state-of-the-art manufacturing facilities.  With this acquisition, we will transform our U.S. operations, becoming the sixth-largest U.S. generics provider and ensuring we have the ability to continue our strong trajectory of growth.”