OR WAIT null SECS
The transaction provides Allergan stockholders with immediate value and enhanced commercial opportunities, according to a company statement.
After much speculation of a hostile takeover of Allergan by Valeant, Actavis has announced that they have a reached an agreement to acquire Botox-maker Allergan for $66 million. This works out to be $219 per Allergan share, more than the $200 per share that Valeant said they were prepared to offer. Prior to the Actavis announcement, Allergan had been resisting a takeover by Valeant and Allergan’s shareholder, Pershing Square Capital Management.
"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 Brent Saunders, CEO and president of Actavis, in a press release. "We will establish an unrivaled foundation for long-term growth, anchored by leading, world-class blockbuster franchises and a premier late-stage pipeline that will accelerate our commitment to build an exceptional, sustainable portfolio. The combined company will have a strong balance sheet, growing product portfolios, and broad commercial reach extending across 100 international markets."
The deal was unanimously approved by the Actavis and Allergan boards of directors and is projected to create pro forma revenues in excess of $23 billion. Actavis said the acquisition would also create synergies of at least $1.8 billion and generate more than $8 billion in free cash flow in 2016. According to a release from Actavis, “The addition of Allergan’s portfolio, including multiple blockbuster therapeutic franchises, doubles the revenues of Actavis’ North American specialty brands business.” The combined company will have blockbusters in ophthalmology, neurosciences, and dermatology, as well as specialty products in the areas of gastroenterology, cardiovascular health, women’s health, urology, and infectious diseases.
Allergan Chairman and CEO David E. I. Pyott alluded to the failed attempt at a hostile takeover by Valeant, saying, "We are combining with a partner that is ideally suited to realize the full potential inherent in our franchise. Together with Actavis, we are poised to extend the Allergan growth story as part of a larger organization with a broad and balanced portfolio, a meaningful commitment to research and development, a strong pipeline, and an unwavering focus on exceeding the expectations of patients and the medical specialists who treat them.”