King Pharmaceuticals to acquire Alpharma for $1.6bn
In the US, King Pharmaceuticals, headquartered in Bristol, Tennessee, and Alpharma, of New Jersey, have signed a merger agreement under which King will acquire all outstanding shares of Class A Common Stock of Alpharma for a total equity value of around $1.6 bn (
In the US, King Pharmaceuticals, headquartered in Bristol, Tennessee, and Alpharma, of New Jersey, have signed a merger agreement under which King will acquire all outstanding shares of Class A Common Stock of Alpharma for a total equity value of around $1.6 bn (£1bn). The Board of Directors of both companies have unanimously approved the transaction.
The terms and conditions of King's amended offer will be described in amended offer documents, which will be filed with the Securities and Exchange Commission and mailed to Alpharma stockholders. Alpharma's Board recommends that Alpharma stockholders tender their shares into King's amended offer.
"We are excited about the combination of King and Alpharma, which will create a leading specialty pharmaceutical company with greater scale and capabilities," said Brian A. Markison, chairman, president and ceo of King. "The transaction will create a stronger platform to deliver innovation to our customers. King and Alpharma are highly complementary and we look forward to even greater success as a combined company," he added.
Alpharma's Animal Health division will increase the diversification of King's business and is expected to provide steady cash flow to fuel future strategic initiatives. Additionally, King believes the commercialisation capabilities that this combination provides will enhance the anticipated launches of REMOXY (long-acting oral oxycodone) and EMBEDA (morphine sulfate extended-release with sequestered naltrexone hydrochloride), both of which are designed to resist or deter common methods of opioid misuse and abuse.
King anticipates that the transaction will be completed by the end of 2008.