Actavis To Acquire Auden Mckenzie For GBP306 Mln Plus Royalty - Quick Facts

(RTTNews) - Specialty pharmaceutical company Actavis Plc. (ACT) and owners of Auden Mckenzie Holdings Limited said they have reached a definitive agreement for Actavis to acquire Auden Mckenzie for about 306 million pounds in cash, plus a two-year royalty on a percentage of gross profits of one of Auden Mckenzie's products.

The acquisition is expected to be immediately accretive to Actavis' non-GAAP earnings in 2015. It is expected to close in the first quarter of 2015.

Auden Mckenzie is focused on the development, licensing and marketing of niche generic medicines and proprietary brands in the UK. It will be acquired on a debt free basis, and the transaction will exclude Auden Mckenzie's real estate portfolio.

The acquisition will make Actavis the number one supplier of generic pharmaceuticals in the UK. Following the acquisition, and the expected combination of Actavis and Allergan later this year, Actavis will hold the number three position in the supply of UK pharmaceuticals.

Actavis currently markets more than 650 generic products in the UK, and has around 85 additional products under registration and development. The combination with Auden Mckenzie is expected to add approximately 175 new generic and branded products, as well as a pipeline of approximately 40 additional products, in various dosage forms, for treatments across a wide range of therapeutic areas.

Latham & Watkins is serving as legal counsel to Actavis. Morgan Lewis is the legal counsel to Auden Mckenzie. Roger Davies of Redpharma is serving as an adviser to Auden Mckenzie.