Endo will Buy Par Pharmaceutical Holdings Inc for $8 billion

Published By : 18 May 2015 | Published By : QYRESEARCH

Dublin based Endo International Plc plans to buy Par Pharmaceutical Holdings including debt from TPG Capital the private equity firm for approximately $8 billion shortly. This move will place Endo among the global top five generic drug makers. Premarket trading shows a 3 percent rise to $88.05 in Endo’s shares.

Endo International Plc specializes in healthcare focused on enhancing patients’ lives while creating shareholder value. The company markets, develops, manufactures, and distributes quality pharmaceutical, medical and generic products, through its operating companies. Endo was created in 1997 as a result of management buyout. Par Pharmaceuticals manufactures markets, and develops branded and generic specialty pharmaceuticals. The company is based in United States in New Jersey and has additional facilities related to manufacturing, distribution and research in California and New York.

With the deal Endo gets Par’s 100 generic drugs and about 5 manufacturing plants . This includes a copy of Entocort, one of GlaxoSmithKline's (GSK.L) cholesterol drug, Lovaza and AstraZeneca's (AZN.L) Crohn's disease treatment.

TG Capital a private equity firm, had acquired Par Pharmaceuticals in 2012 for $1.9 billion when pressured by activist firm Relational Investors LLC to sell itself. The company had a debt of $2.35 billion as of March 31 when it filed for initial public offering of common stock, with U.S. regulators. Par Pharmaceuticals and its proprietary products and generic divisions operates through Strativa Pharmaceuticals.

JP Morgan are Par Pharmaceuticals financers and Barclays, Deutsche Bank and Houlihan Lokey are Endo’s financial advisers. Endo has stated that it was financed by Barclays, and Deutsche Bank for funding the deal. Endo’s legal advisory firms are Skadden, Arps, Slate, Meagher & Flom LLP and Par has legal advisers from Ropes & Gray LLP. 
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