Industryweek 4893 Perrigo

US Drugmaker Perrigo Buys Irish Elan for $8.6 Billion

July 29, 2013
"We believe the combination of Perrigo and Elan will create an industry-leading global healthcare company with the balance sheet liquidity and operational structure to accelerate our growth and capitalize on international market opportunities," said Perrigo Chairman and CEO, Joseph C. Papa.

DUBLIN – U.S. drugs company Perrigo (IW 500/266) is buying Irish biotech firm Elan for $8.6 billion in cash and shares, the firms said Monday.

The deal is aimed at creating a global group with the strength to pursue expansion, and a new holding company will be based in Ireland.

The terms represents a 10.5% premium on Elan's closing stock price.

Elan had put itself up for sale in June, when it rejected a takeover from U.S. intellectual property investor Royalty Pharma worth as much up to $8 billion.

After completion of the deal, Perrigo shareholders will own 71% of the combined company, while Elan investors will own about 29%.

"Perrigo Company ... and Elan Corporation today announced that ... Perrigo and Elan have entered into a definitive agreement under which Elan will be acquired by a new holding company incorporated in Ireland (New Perrigo)," the firms said in a statement.

"The cash and stock transaction, which is valued at approximately $8.6 billion...will create a global healthcare company with an industry-leading growth profile and the geographic scale and scope to continue building a truly differentiated business."

Perrigo Readies for International Expansion

Elan shareholders will receive $6.25 in cash and 0.07636 shares of New Perrigo for each Elan share, in a deal that values each Elan share at $16.50.

"Through this transaction, Perrigo establishes a diversified platform for further international expansion," said Perrigo Chairman and CEO, Joseph C. Papa, in the statement.

"We believe this transaction is compelling for Elan shareholders and fully takes into account the value of Elan's assets."

He added: "We believe the combination of Perrigo and Elan will create an industry-leading global healthcare company with the balance sheet liquidity and operational structure to accelerate our growth and capitalize on international market opportunities."

The transaction is expected to be completed by the end of the year.

Copyright Agence France-Presse, 2013

Popular Sponsored Recommendations

Global Supply Chain Readiness Report: The Pandemic and Beyond

Sept. 23, 2022
Jabil and IndustryWeek look into how manufacturers are responding to supply chain woes.

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

How Organizations Connect and Engage with Frontline Workers

June 14, 2023
Nearly 80% of the 2.7 billion workers across manufacturing, construction, healthcare, transportation, agriculture, hospitality, and education are frontline. Learn best practices...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!