Concordia Healthcare to buy Amdipharm Mercury for $3.5bn

Amdipharm was established from the merger of Amdipharm and the Mercury Pharma Group in 2013. Cinven bought both firms in 2012 and later merged them.

The deal will expand Concordia’s geographic footprint to over 100 countries. Amdipharm expects to post revenue of $530m to $560m on a pro forma basis for 2015.

It gives Concordia a portfolio of over 190 niche pharmaceutical products and an entry into new therapeutic areas like endocrinology, ophthalmology and urology.

The combined company is anticipated to have pro forma revenue of $870m to $920m for 2015 and adjusted EBITDA of $510m to $540m.

The deal is anticipated to close in the fourth quarter of this year. Concordia will pay £800m in cash, issue 8.49 million shares and assume about $1.4bn in debt.

The company will also pay up to £144m in cash in the fourth quarter of next year depending on performance. Upon completion of the deal, Cinven will own about 19.9% of Concordia.

Concordia chairman and CEO Mark Thompson said: "This acquisition is a key milestone and pivotal turning point in Concordia’s strategy, which gives us the platform to take our business to the next level.

"It will uniquely position the combined company as a leading, international pharmaceutical company with extensive geographic reach, a diversified and attractive product portfolio, and an asset-light business model that we expect will allow us to focus investments and resources on further growing our business."

Amdipharm Mercury CEO John Beighton said: "We look forward to being part of the Concordia business – as the combination with AMCo is expected to create significant opportunities for further growth in the global pharmaceutical sector."