Concordia Healthcare Corp (CXRX.O CXR.TO) said it would buy Amdipharm Mercury Ltd from European private equity firm Cinven for US$1.9 billion to expand its portfolio of drugs aimed at treating rare diseases.
Amdipharm Mercury has a portfolio of more than 190 drugs and the deal will provide Concordia entry into areas such as endocrinology, opthalmology and urology, the Canadian drug-maker said on Tuesday.
Including debt, the deal is valued at US$3.3 billion. The transaction also includes performance-based payments of up to US$220 million, payable in cash in the fourth quarter of 2016.
Cinven is expected to hold a 19.9 percent stake in Concordia after the transaction closes, the Canadian drug-maker said.
The deal, which is expected to close in the fourth quarter of 2015, will immediately add to Concordia’s adjusted earnings.
Goldman, Sachs & Co is the financial adviser to Concordia and Sullivan & Cromwell LLP, Fasken Martineau DuMoulin LLP and Simmons & Simmons LLP are its legal advisers.
Jefferies and Rothschild are Cinven’s financial advisers and Clifford Chance, Torys LLP and Jones Day its legal advisers.
Concordia’s shares closed at $110.25 on the Toronto Stock Exchange on Friday. Up to Friday’s close, the stock had more than doubled in value this year.
Update: Based in Oakville, Ontario, Concordia is a diversified healthcare company focused on legacy pharmaceutical products and orphan drugs.
(Reporting by Amrutha Penumudi in Bengaluru; Editing by Saumyadeb Chakrabarty and Kirti Pandey)
(This story was edited by Kirk Falconer, editor of peHUB Canada)
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