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Forest Labs to purchase Aptalis for $2.9 billion
January 8th, 2014
NEW YORK – Forest Laboratories Inc. plans to acquire specialty drug maker Aptalis in a $2.9 billion cash deal.
Forest Labs said Wednesday that the acquisition will diversify its offerings in key therapeutic and market areas, including expanding its gastrointestinal franchise in United States and Canada and helping to grow its cystic fibrosis business in Europe.
The transaction is expected to close in the first half of this year, pending regulatory review and other closing conditions.
"Aptalis is an excellent strategic and financial fit for Forest because of its strong product offerings in two therapeutic franchises that are complementary to Forest: GI in the U.S. and Canada and cystic fibrosis in Europe. The acquisition of Aptalis helps diversify Forest while advancing our strategy to create blockbuster therapeutic areas," stated Brent Saunders, chief executive officer and president of Forest Labs. "Because there is such a strong fit, we expect to grow the sales of products from both Forest and Aptalis while realizing $125 million in cost synergies from combining the two companies. As a result, the acquisition is expected to add nearly $700 million in revenue and approximately 78 cents to our non-GAAP earnings per share in fiscal year 2015."
For its 2013 fiscal year ended in September, Aptalis had sales of $688 million, with sales of its top three products in the U.S. — Canasa, Carafate and Zenpep — accounting for more than 60% of companywide revenue. Global sales represented about 15% of total sales, and Aptalis Pharmaceutical Technologies, a third-party delivery technology provider and drug manufacturer, accounted for approximately 15% of revenue.
"Aptalis has built a strong position in the North American and European gastroenterology and cystic fibrosis markets through internal product development and acquisitions of products and companies over the last few years," commented Frank Verwiel, CEO of Aptalis. "I'm proud of all that our team has accomplished, and Forest's acquisition of our company is a testament to the value we have created and the strength of the business we have built. There is a strong business fit between Aptalis and Forest, our strategies are closely aligned, and I am confident that Forest will maximize the opportunity for our products and patients."
Other products from Aptalis include Pylera, Rectiv, Viokace, Ultresa, Lacteol, Delursan, Panzytrat and Salofalk.
Forest said it aims to acquire Aptalis from its shareholders, including global private investment firm TPG, for $2.9 billion, using a combination of cash on hand and debt to fund the transaction. The company said it has secured commitment for a $1.9 billion bridge facility.