Mylan Inc acquiring Abbotts non-US generics business markets

Mylan to acquire Abbott’s non-US generics business markets

7:56 AM, 19th July 2014
Mylan Inc acquiring Abbotts non-US generics business markets

PITTSBURGH, US: Mylan Inc has entered into a definitive agreement with Abbott whereby Mylan will acquire Abbott’s non-US developed markets specialty and branded generics business in an all-stock transaction. Upon closing, Abbott will receive 105 million shares of the combined company worth approximately $5.3 billion based on Mylan’s closing price of $50.20 on 11 July 2014, representing an approximately 21 per cent ownership stake.

The transaction will instantly further diversify Mylan’s business and strengthen its commercial platform outside the US, building new opportunities for growth and additional sales channels in the acquired markets. It also is expected to provide Mylan with significant additional financial firepower to pursue future opportunities, an additional $600 million of annual post-close EBITDA, an optimized global tax structure and enhanced balance sheet capacity.

“We have been actively looking at a wide range of opportunities, and the acquisition of this business is absolutely the right next strategic transaction for Mylan as it builds on our strong momentum, expands and further diversifies our business in our largest markets outside of the US, and clearly positions Mylan for the next phase of growth through enhanced financial flexibility and a more competitive global tax structure,” said Robert J Coury, Executive Chairman, Mylan.

“In addition to maximizing our growth drivers, the transaction is expected to be immediately and significantly accretive, and to create significant additional cash financial flexibility at close, which we fully intend to put to use to fund future opportunities in this continually consolidating sector. The numerous strategic and financial benefits of this transaction will allow Mylan to potentially accelerate achievement of our long-term financial targets to the benefit of our shareholders,” added Coury.

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