Actavis becomes largest supplier of U.K. generics with Auden Mckenzie Holdings acquisition

DUBLIN — Actavis on Monday agreed to acquire Auden Mckenzie Holdings for approximately $465.8 million in cash, plus a two-year royalty on a percentage of gross profits of one of Auden Mckenzie's products.  

 

"This strategic combination is highly synergistic with our U.K. business, is immediately and highly accretive and reflects our commitment to invest to achieve a top position in key international markets," stated Robert Stewart, Actavis COO and incoming EVP Actavis, and president of Generics and Global Operations.

 

The acquisition will make Actavis the largest supplier of generic pharmaceuticals in the U.K., Actavis noted. Following the close of the acquisition, and the anticipated combination of Actavis and Allergan later this year, Actavis will hold the No. 3 position in the supply of U.K. pharmaceuticals.  

 

Actavis currently markets more than 650 generic products in the U.K., and has approximately 85 additional products under registration and development. The combination with Auden Mckenzie is anticipated to add approximately 175 new generic and branded products, as well as a pipeline of approximately 40 additional products, in various dosage forms for treatments across a broad spectrum of therapeutic areas.

 

The acquisition is expected to close in the first quarter of 2015.  

 

The transaction excludes Auden Mckenzie's real estate portfolio.

 

Latham & Watkins is serving as legal counsel to Actavis. Morgan Lewis is serving as legal counsel to Auden Mckenzie. Roger Davies of Redpharma is serving as an adviser to Auden Mckenzie.