Mylan to commence with formal offer to acquire Perrigo

POTTERS BAR, England — Mylan announced on Friday that it commence with a formal offer to acquire generic drug maker Perrigo.



Under the terms of the offer announced Friday, Perrigo shareholders will receive $60 in cash and 2.2 Mylan ordinary shares for each Perrigo ordinary share. The formal offer is worth about $33 billion in cash and stock.



It is expected that, following the consummation of the transaction, Mylan shareholders will own approximately 61.8% of the outstanding Mylan ordinary shares on a fully diluted basis and former Perrigo shareholders will own approximately 38.2% of the outstanding Mylan ordinary shares on a fully diluted basis.



So far, Perrigo has rejected Mylan’s advances. Earlier in the week, Perrigo unanimously rejected the unsolicited proposal from Mylan, disclosed April 8, to acquire all of the outstanding shares of Perrigo for $205 per share in a deal valued at $29 billion.



"While we are disappointed by the decision of the Perrigo Board to reject our proposal without entering into discussions thus far, we are still hopeful and confident that we can engage with their Board about our offer and how to best bring our organizations together,” stated Mylan's executive chairman Robert Coury. "As evidenced by today's Rule 2.5 announcement, we remain steadfast in our offer to acquire Perrigo, given the substantial opportunities we anticipate it will create for our company, shareholders and other stakeholders.  We will not be distracted from the pursuit of this exciting, value-creating combination."



Mylan expects the combination will result in at least $800 million of annual pre-tax operational synergies by the end of year four following the consummation of the offer.



Meanwhile, Mylan shareholders have another deal to consider: Teva Pharmaceutical Industries recently submitted an unsolicited proposal to acquire Mylan in a deal valued at $40 billion.