Horizon Pharma To Buy Raptor Pharma For Equity Value Of About $800 Mln

(RTTNews) - Horizon Pharma plc (HZNP) said that it agreed to acquire all of the issued and outstanding shares of Raptor Pharmaceutical Corp. (RPTP) common stock for $9.00 per share in cash, for an implied fully diluted equity value of approximately $800 million. The transaction is expected to close in the fourth quarter of 2016.

The deal is expected to be accretive to adjusted EBITDA in 2017.

Raptor's previously disclosed total net sales guidance for full-year 2016 is $125 million to $135 million, which includes both PROCYSBI and QUINSAIR. Horizon will provide additional detail regarding its guidance for full year 2017 net sales and adjusted EBITDA in the first quarter 2017.

The acquisition is structured as an all cash tender offer for all the issued and outstanding shares of Raptor common stock at a price of $9.00 per share followed by a merger in which each remaining untendered share of Raptor common stock would be converted into the $9.00 per share cash consideration paid in the tender offer.

The transaction, which has been unanimously approved by the boards of directors of both companies, is subject to the satisfaction of customary closing conditions and regulatory approvals, including antitrust approval in the United States.

Horizon noted that it intends to finance the transaction through $675 million of external debt along with cash on hand.