Actavis, Allergan Shareholders Okay Merger Proposals

(RTTNews) - Specialty pharmaceutical company Actavis plc (ACT) and botox maker Allergan Inc (AGN) on Tuesday said that all proposals related to Actavis' planned acquisition of Allergan were approved by both companies' shareholders.

The shareholder approvals satisfy certain conditions to the closing of the deal. The closing of the deal is expected to occur late in the first quarter or early in the second quarter of 2015, subject to the satisfaction or waiver of certain regulatory approvals and other customary closing conditions.

In November, Actavis agreed to acquire Allergan in a cash and stock deal valued at about $219 per share or $66 billion. The deal enables Allergan to fend off a hostile takeover bid from Canadian drug maker Valeant Pharmaceuticals Inc (VRX.TO, VRX), which is supported in its bid by activist investor William Ackman's Pershing Square Capital Management LP.

The deal will help double the revenue generated by Actavis' North American specialty brands business and double the international revenue of the combined company. The company is projected to have about $5 billion in pro forma 2015 international revenue.

The deal will greatly enhance Actavis' U.S. and international commercial opportunities. It will also enhance its commercial position, expand its portfolio and broaden its footprint in Canada, Europe and Southeast Asia and other high-value growth markets, including China, India, the Middle East and Latin America.

Actavis said it expects the deal to generate at least $1.8 billion in annual synergies commencing in 2016, in addition to the $475 million of annual savings previously announced by Allergan in connection with Project Endurance. It will also generate strong free cash flow of more than $8 billion in 2016 and substantial growth thereafter, which will enable the rapid repayment of debt.

Actavis also plans to maintain annual R&D investment of about $1.7 billion, ensuring the appropriate resource allocation to continue driving exceptional organic growth.