TPG Capital’s Axcan Pays $583 Million for Eurand

Pharmaceutical company Axcan Holdings will pay $583 million, or $12 per share, to acquire specialty pharmaceutical company Eurand, Reuters reported. The deal represents a 9% premium over Eurand’s closing price Tuesday. The acquisition is expected to close during the second quarter of 2011. Axcan is a portfolio company of private equity firm TPG Capital.

(Reuters) – Specialty pharmaceutical company Eurand NV agreed to be bought by privately held pharmaceutical company Axcan Holdings for $583 million in cash.

Axcan’s offer price of $12 per share represents a premium of 9 percent to Eurand’s Tuesday close.

Eurand’s board has approved the acquisition agreement and the deal is expected to close in the second quarter of 2011.

Eurand Chief Executive Gearoid Faherty will be replaced by its Chief Commercial Officer John Fraher next year.

Axcan has secured debt financing from BofA Merrill Lynch, Barclays Capital and RBC Capital Markets, Eurand said.

Goldman Sachs is acting as financial adviser to Eurand, while BofA Merrill Lynch, Barclays Capital, and RBC Capital Markets are acting as advisers to Axcan.

Eurand shares, which have gained 1 percent since it reported third-quarter results in November, closed at $10.97 on Tuesday on Nasdaq. (Reporting by Anand Basu in Bangalore; Editing by Don Sebastian)