Endo International is to buy Par Pharmaceutical Holdings from private-equity firm TPG Capital for about $8 billion, including debt, to become a top-five global generic drugmaker.
The deal will add about 100 approved generic drugs and about four manufacturing facilities, Endo said today.
Generics accounted for about 40% of Endo's 2014 revenue of $2.88 billion, up from 30% in 2013. Par had net product sales of $1.28 billion in 2014.
Most drugs used in the US are cheaper generic copies of brand-name medications.
The percentage is expected to grow as leading drugs lose patent protection.
The worldwide generics market, estimated to be worth $74 billion in 2014, is expected to grow by an average 6.3% annually over the next six years, according to market research firm EvaluatePharma.
Generic drugmakers are also looking to gain scale and get access to products with higher profit margins.
The world's biggest generic drug maker, Teva Pharmaceutical Industries has made an unsolicited $43-billion bid for rival Mylan, as its lucrative Copaxone drug faces generic competition.
Mylan is itself trying to buy Perrigo, which has rebuffed the offer.
Endo, which has completed six deals since 2013, made a bold $11-billion bid for Salix Pharmaceuticals in March, but lost out to Valeant Pharmaceuticals International. Endo is offering 18 million shares and $6.50 billion in cash for Par.
Par was acquired by TPG Capital for $1.9 billion in 2012 following pressure from activist firm Relational Investors to sell itself.
The company, which filed with US regulators in March for an initial public offering, had debt of $2.35 billion as of March 31.
Par CEO Paul Campanelli will lead Endo's generics business.
Endo, which has a market value of about $15 billion, said it had secured financing from Deutsche Bank and Barclays.
