Actavis acquires Allergan in $66 billion deal
DUBLIN — Actavis will acquire Allergan for a combination of $129.22 in cash and 0.3683 Actavis shares for each share of Allergan common stock, the company announced Monday. Based on the closing price of Actavis shares on Nov. 14, the transaction is valued at approximately $66 billion, or $219 per Allergan share.
The combination will create one of the top 10 global pharmaceutical companies by sales revenue, with combined annual pro forma revenues of more than $23 billion anticipated in 2015. The transaction has been unanimously approved by the boards of directors of Actavis and Allergan, and is supported by the management teams of both companies.
"This acquisition creates the fastest-growing and most dynamic growth pharmaceutical company in global health care, making us one of the world's top 10 pharmaceutical companies," stated Brent Saunders, CEO and president of Actavis. "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," he said. "Our combined experienced management team is dedicated to driving strong organic growth while capturing synergies and maintaining a robust investment in strategically focused R&D."
The combination of the two companies doubles the revenue generated by their brands business and doubles the international revenue of the combined company, Saunders noted. "With this combination, we plan to transform the growth profile of our pharmaceutical business and have the ability to generate organic revenue growth at a compound annual growth rate of at least 10% for the foreseeable future," he said.
"Today's transaction provides Allergan stockholders with substantial and immediate value, as well as the opportunity to participate in the significant upside potential of the combined company," said David Pyott, chairman and CEO of Allergan. "We are combining with a partner that is ideally suited to realize the full potential inherent in our franchise."
"This combination will greatly enhance our U.S. and international commercial opportunities," said Paul Bisaro, executive chairman of Actavis. "In the United States, the combination makes us more relevant to an even broader group of physicians and customers. Overseas, it will enhance our commercial position, expand our portfolio and broaden our footprint in Canada, Europe and Southeast Asia and other high-value growth markets, including China, India, the Middle East and Latin America."
The combined company will be led by Brent Saunders, CEO and president of Actavis, and Paul Bisaro will remain executive chairman of the board. The integration of the two companies will be led by the senior management teams of both companies, with integration planning to begin immediately in order to transition rapidly to a single company. Additionally, two members of the Allergan board of directors will be invited to join the Actavis board of directors following the completion of the transaction.