Financial News

LAKE ZURICH, Ill. and LAKE FOREST, Ill. — Fresenius Kabi will acquire Akorn, manufacturer and marketer of prescription and over-the-counter pharmaceutical products, for approximately $4.3 billion, or $34 a share, plus the assumption of approximately $450 million of debt. The transaction is expected to close by early 2018 and to be accretive in 2018 to Fresenius Group net income and EPS, excluding integration costs.

FRANKLIN LAKES, N.J. and MURRAY HILL, N.J. — BD will acquire C. R. Bard, a medical technology leader in the fields of vascular, urology, oncology and surgical specialty products, for $317 per Bard common share in cash and stock, for a total consideration of $24 billion. The agreement has been unanimously approved by the boards of directors of both companies.

MAPLE GROVE, Minn. — Japanese generic pharmaceutical manufacturer Sawai Pharmaceutical will purchase the generic pharmaceuticals business of Upsher-Smith Laboratories, from its parent, Acova, for $1.05 billion.

Under Thursday’s agreement, expected to close near the end of June 2017, Rusty Field, the current President of Upsher-Smith, will continue leading the company. Following the closing, Upsher-Smith’s non-generic pharmaceuticals businesses will remain with Acova.

Although the consumer packaged goods industry is still climbing the sales charts to record heights — the industry reached $797 billion in 2016 — the engines driving that growth are beginning to sputter, IRI and Boston Consulting Group reported last month as part of their latest growth leaders report, “CPG Growth Leaders - Strategic Analytics.” According to the report, dollar sales growth is at its lowest since 2011, coming in at just 1.4% versus the prior year.

BRAMPTON, Ontario — Loblaw Companies plans to invest approximately $1.3 billion into the Canadian economy in 2017, the company announced Thursday. The investment will expand and improve Loblaw's network.

"Our investment will create improved retail experiences for customers and local jobs for communities," stated Galen Weston, chairman and CEO, Loblaw Companies. "Our focus is clear. Across our network, we will provide greater access to fresh, affordable, innovative food and more robust health and wellness services for Canadians."

DUBLIN, Ohio — Cardinal Health will acquire Medtronic's patient care, deep vein thrombosis and nutritional insufficiency businesses for $6.1 billion in cash. The transaction is expected to close in the first quarter of Cardinal Health's fiscal year 2018, subject to customary closing conditions, including regulatory clearances.  

The purchase price does not include cash tax benefits of at least $100 million. The acquisition is expected to be financed with a combination of $4.5 billion in new senior unsecured notes and existing cash.

WESTBOROUGH, Mass. — Amazon is interested in buying BJ’s Wholesale Club, which is currently up for sale, according to several news reports.

BJ’s, owned by private equity firms CVC Capital Partners and Leonard Green & Partners, could reportedly fetch more than $4 billion — nine times BJ’s $450 million in EBITDA — if it were sold

Drug chains are editing existing product assortments to clear more space for up-and-coming brands that court back shoppers who may have migrated to specialty stores. Several categories are heating things up in the beauty aisles, especially Korean beauty. Kline research reveals the category is growing at a 30% annual clip, and chains are seeking the right items to introduce more shoppers to the innovative and effective Korean entries.