Israeli Firm to Buy Barr Laboratories for $7.5B
Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA) and Barr Pharmaceuticals, Inc. (NYSE: BRL) announced July 18 that they have signed a definitive agreement under which Teva will acquire Barr, the fourth largest generic drug company worldwide for $7.46 billion plus the assumption of net debt of approximately $1.5 billion. On a pro forma basis, 2007 revenues of the combined company would have been approximately $11.9 billion. The combined company will have a global platform, operate directly in more than 60 countries and employ approximately 37,000 people worldwide.
Barr Laboratories employs more than 500 at its manufacturing facility in Bedford County, Virginia. Company officials announced last January that the plant would undergo a major expansion in the next few years.
The companies’ highly complementary product offerings and development pipelines will extend Teva’s generic and proprietary offerings for customers globally. By adding development resources and breadth to Teva’s product portfolio and pipeline, particularly the Paragraph IV and first to file opportunities, Teva will bring more products to market while increasing access to affordable medicines. The transaction also bolsters Teva’s specialty pharmaceutical platform through the addition of Barr’s substantial women’s health portfolio to Teva’s respiratory franchise, further enhancing Teva’s balanced business model.
Shlomo Yanai, President and Chief Executive Officer of Teva, said, “The acquisition of Barr will elevate Teva’s market leadership to a new level. The combination of our two companies provides an outstanding opportunity strategically and economically: It will enhance our market share and leadership position in the U.S. and key global markets, further strengthen our portfolio and pipeline, and provide upside to our strategic plan, by allowing us to exceed our 20/20 goals for 2012.”
Bruce Downey, Chairman and Chief Executive Officer of Barr, said, “This transaction will enable Teva to capitalize on Barr’s portfolio of unique generic and proprietary products, benefit from our capabilities in biologics, and expand its presence in important Central and Eastern European markets. This agreement has the full support of Barr’s Board of Directors and senior management, and will benefit the shareholders, customers and employees of Barr.”
