Par Pharmaceutical seals USD410m agreement to purchase Anchen.
M2 PHARMA-August 25, 2011-Par Pharmaceutical seals USD410m agreement to purchase Anchen(C)2011 M2 COMMUNICATIONS
25 August 2011 - US Par Pharmaceutical Companies (NYSE:PRX) said yesterday it has agreed to purchase sector player Anchen Pharmaceuticals for USD410m (EUR284.3m) in cash.
California-based Anchen specialises in the field of extended release and niche generic products.
The deal is projected to have an accretitive impact on the non-GAAP earnings of the buyer for 2011. According to Par's CEO, Patrick LePore, the acquisition will boost the research and development infrastructure of the company.
Par intends to fund the takeover with cash on hand as well as via a term loan worth USD350m. The transaction is seen closing by the end of 2011.
Par was consulted by JKF Advisors LLC, Orrick, Herrington & Sutcliffe LLP, Arent Fox LLP and PricewaterhouseCoopers LLP. It also got a fairness opinion by JP Morgan.
Anchen Pharmaceuticals received advice by Jefferies & Company and Winston & Strawn LLP.
(USD1 = EUR0.693)
((Comments on this story may be sent to email@example.com))