Watson Pharma completes acquisition of Actavis for EUR 4.25 bln
Watson Pharmaceuticals, Inc said it has completed buying of the Actavis Group for EUR 4.25 billion. The combination creates the world’s third largest generic pharmaceutical company with likely pro forma combined 2012 revenues of $8 billion.
The integrated global pharmaceutical company funded the transaction through a combination of $1.8 billion in terms of loan borrowings and issuance of $3.9 billion in senior unsecured notes.
The company said the transaction is accretive to non-GAAP earnings, before synergies. It also noted that the strong cash flows of the combined business are likely to permit rapid pay down of debt.
Paul Bisaro, President and CEO of Watson said, “Today we unite 2 powerful, profitable and rapidly growing companies into one exceptional global business. As a result of accelerated integration planning, we will immediately begin to maximize the exceptional financial and commercial value of this combination.”
Mr. Bisaro also said, “With this acquisition complete, we now have the generic assets in place that will power our continued organic growth, and generate strong cash flow to support the rapid pay-down of debt, which will allow us to continue to focus on future investments to enhance all of our businesses, particularly our Global brands and Biosimilars businesses. Watson also plans to host Investor Day 2013 in January to provide a more comprehensive review of the combined business.”
Watson continues to expect $300 million in annual cost synergy savings from the Actavis buyout within three years. The acquisition combines the two growing, successful and highly profitable companies and substantially complete Watson’s expansion as a leading global generics company.
Watson Pharmaceuticals is an integrated global pharmaceutical company engaged in development, manufacture, marketing and distribution of generic pharmaceuticals. The company also distributes generic and branded pharmaceutical products through its Anda, Inc distribution business.