Actavis buying Warner Chilcott in $8.5 billion deal

Monday 20 May 2013 15.39
Actavis deal for Warner Chilcott to create third-biggest specialty pharmaceutical company in US
Actavis deal for Warner Chilcott to create third-biggest specialty pharmaceutical company in US

Actavis is buying Warner Chilcott in an all-stock transaction valued at about $8.5 billion which would create the third-biggest specialty pharmaceutical company in the US.

The new company is expected to be called Actavis PLC and will be incorporated in Ireland, where Warner Chilcott is incorporated.

Warner Chilcott shareholders will own a 23% stake in the new company. They will receive 0.160 shares of the new company for each share they own.

This equals $20.08 per share, which is a 5% premium to Friday's closing price of $19.21.

Actavis Inc shareholders will receive one share of the new company for each share they own at closing.

Both companies' boards unanimously approved the deal, which is expected to close by the end of the year.