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news.Icelandic company Actavis has negotiated an agreement to purchase the privately held US group Amide, paying over $500 million for the consolidation.
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The initial $500 million will be given in cash partially financed through treasury shares. An additional $100 million will be payable over two years subject to performance. Upon completion the acquired company is expected to have a cash balance of approximately $40 million.
The deal represents a significant milestone in Actavis’ plans to become one of the leading global companies within the generic pharmaceuticals sector, broadening its product portfolio to over 500 marketed products with more currently in development.
For Actavis the main attractions of the purchase include developing a strong US presence and platform for the launch of future products, the ability to market former Amide products in Actavis’ existing arena and the acquisition of enhanced manufacturing facilities.
Actavis expects the acquisition to increase combined pre-tax earnings by up to 50% and earnings per share by around 35% in the first full year following completion.
Commenting on the acquisition, Robert Wessman, president and CEO of Actavis, said: “The transaction brings considerable product and marketing synergies and positions us well to take advantage of further opportunities in the rapidly expanding generic pharmaceuticals market.”
Amide’s primary New Jersey facility is currently capable of manufacturing 1.5 billion tablets and capsules per annum. Furthermore, a new plant is being built in New Jersey, which will increase manufacturing capacity to 6-8 billion tablets per annum.