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news.Fresenius, a provider of dialysis and home medical care products, and APP Pharmaceuticals have entered into a definitive merger agreement pursuant to which Fresenius will acquire APP.
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Under the terms of the agreement, Fresenius will acquire the outstanding common stock of APP for $23 in cash per share plus a contingent value right (CVR) that could deliver up to an additional $970 million, or $6 per share in cash, if the financial results of the company meet certain targets (payable in second quarter 2011).
The cash consideration of $23 per share and potential for total value of $29 per share represents a premium of 29% and 63%, respectively, over the company’s closing stock price on July 3, 2008.
APP will join Fresenius as part of its Fresenius Kabi division. Through the acquisition of APP, Fresenius Kabi enters the US pharmaceutical market and achieves a leading position in the US injectable generics market.
Tom Silberg, president and CEO of APP, said: “We are excited about joining the Fresenius family of businesses and the opportunities this combination will provide for expanding our commitment to patient care on a global basis.”