Teva Acquiring IVAX for $7.4 billion
Teva Pharmaceutical Industries and IVAX Corporation announced that Teva is acquiring IVAX for $7.4 billion. IVAX shares will be converted to either $26 in cash or 0.8471 TEVA ADRs.
IVAX shareholders are expected to own about 15% of TEVA on a fully-diluted basis as a result of the transaction. Both companies’ boards of directors have approved the transaction.
“This is a truly exciting day for TEVA. IVAX, like TEVA, has been a pioneer in its strategies for globalization and growth,” said Israel Makov, TEVA’s President and CEO. “Bringing our two companies together will vastly enhance our leadership position in the global generic industry.”
“The combination of our two complementary businesses will allow TEVA to expand and strengthen our global generic and branded businesses with additional products, a deeper pipeline, and a wider presence in new therapeutic areas and growth markets,” he added.
Apart from its complementary North American and European operations, IVAX is expected to show strong results in Latin America. TEVA is expected to generate over $7 billion in sales as it operates in over 50 countries, and employs about 25,000 people.
“We have had longstanding business and personal relationships at TEVA, and have a strong sense of respect for the high ethical standards that have guided their sustained history of increasing shareholder value,” said IVAX Chairman and CEO Dr. Phillip Frost.
“The IVAX transaction significantly supports our long term strategy of profitable growth and global leadership,” said Makov. “We believe that both companies share similar values and cultures, which I am confident will help us to create a smooth transition and ensure considerable synergies. We expect the transaction to become accretive within the first year.”
The transaction is still subject to approval from shareholders of both companies, as well as antitrust notification, clearance from the United States and Europe, and other customary conditions.
Some management shareholders of IVAX that hold about 19% of the company’s outstanding shares of Common Stock, have agreed to vote their shares in favor of the transaction. The transaction is expected to close later this year or early next year.