Thursday, October 23rd12.5°C
23711
23004

Forest Labs buying specialty gastrointestinal and cystic fibrosis company Aptalis for $2.9B

NEW YORK, N.Y. - Forest Laboratories is buying Aptalis, which specializes in treatments for gastrointestinal problems and cystic fibrosis, for $2.9 billion in cash.

Shares of Forest Labs surged in premarket trading Wednesday.

Forest Labs President and CEO Brent Saunders said in a statement Wednesday that the transaction would help his company diversify its business. There's an anticipated $125 million in cost savings from the combination by 2016.

Forest Laboratories Inc. is buying the privately held Aptalis from its shareholders, which include private investment firm TPG.

Aptalis had $688 million in sales in fiscal 2013, which ended in September. Its top three U.S. products, Canasa, Carafate, and Zenpep, made up more than 60 per cent of its total 2013 sales. International sales comprised about 15 per cent of revenue. Third-party delivery technology provider and drug maker Aptalis Pharmaceutical Technologies accounted for about 15 per cent of revenue.

Forest Labs said that it plans to fund the deal with available cash and debt. The company said due to the acquisition it has not yet started its previously announced accelerated stock repurchase program. Forest Labs said that once it completes permanent financing for the buyout that it will consider starting the accelerated stock repurchase program.

The acquisition is expected to add about 78 cents per share to Forest Lab's 2015 adjusted earnings and almost $700 million in revenue.

The deal requires review by anti-trust authorities in the U.S. and Canada. The buyout is targeted to close in the first half of 2014.

Forest Labs' stock rose $5.89, or 10 per cent, to $64.65 in premarket trading about 1 1/2 hours before the market open.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14514.80+202.729
S&P CDNX807.14-0.86
DJIA16763.38302.06
Nasdaq4473.879+91.032
S&P 5001961.27+34.16
CDN Dollar0.8899+0.0004
Gold1228.90-16.60
Oil81.36+1.23
Lumber330.30+1.60
Natural Gas3.621-0.038

 
Okanagan Companies
Pacific Safety0.105-0.015
Knighthawk0.01-0.005
QHR Technologies Inc1.17+0.02
Cantex0.065+0.01
Anavex Life Sciences0.1980.00
Metalex Ventures0.04-0.01
Russel Metals33.21+0.68
Copper Mountain Mining2.08-0.02
Colorado Resources0.14-0.005
ReliaBrand Inc0.013+0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.40-0.005

 





FEATURED Property
206082520 Garmisch Road
3 bedrooms 2 baths
$499,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...

_








Member of BC Press Council


22707