Par Pharmaceuticals to be Acquired by TPG for $1.9 Billion

Par Pharmaceuticals announced that it has entered into an agreement to be acquired by an affiliate of the private investment firm, TPG. The transaction has an equity value of $1.9 billion. Under the terms of the agreement, Par shareholders will receive $50 per share of common stock, which represents a premium of 37% over the closing price of the stock on July 13, 2012.

In addition, Par may solicit offers of greater value from third parties through Aug. 24, 2012. If no superior offer is forthcoming, the transaction is expected to close in 2012, subject to customary approvals and closing conditions.

Par Pharmaceuticals is a maker of generic drugs based in the US, and contains two operating divisions, Par Pharmaceutical and Strativa Pharmaceuticals. The company develops, manufactures, and markets high-barrier-to-entry generic drugs and niche, innovative proprietary pharmaceuticals. Par’s agreement with TPG follows a period of growth through acquisition by Par over the past year. Par acquired the Chennai, India-based solid-dosage manufacturer, Edict Pharmaceuticals, in February 2012 for approximately $24 million, and specialty pharmaceutical company Anchen in November 2011 for approximately $410 million.