Forest Labs. To Acquire Privately-held Aptalis For $2.9 Bln Cash - Quick Facts

(RTTNews) - Drug maker Forest Laboratories, Inc. (FRX) has agreed to acquire Aptalis, a privately-held U.S.-based specialty Gastrointestinal and Cystic Fibrosis company, for $2.9 billion cash from its shareholders, including TPG, the global private investment firm. The acquisition, requiring review by anti-trust authorities in the U.S. and Canada, is likely to be accretive to Forest's fiscal 2015 non-GAAP earnings per share.

In a statement, Forest Laboratories said: "Because there is such a strong fit, we expect to grow the sales of products from both Forest and Aptalis while realizing $125 million in cost synergies from combining the two companies." According to Forest Labs., the transaction is expected to add nearly $700 million in revenue and about $0.78 to its non-GAAP EPS in fiscal 2015.

Forest expects to use a combination of cash on hand and debt to fund the transaction; and has secured commitment for a $1.9 billion bridge facility. As a result of the Aptalis purchase, Forest has not yet begun its prior announced accelerated share buyback program. Upon completion of the permanent financing for the acquisition, Forest would consider initiating the accelerated share repurchase.

The transaction may close in the first half of 2014 pending regulatory review and satisfactory completion of necessary closing conditions.

Aptalis, a global specialty pharma company, achieved sales of $688 million in fiscal 2013 which ended September 2013.