Actavis to Acquire Warner Chilcott in $8.5 Billion Deal

A definitive agreement has been reached in which New Jersey-based Actavis (NYSE: AGN  ) will acquire Ireland-based pharma company Warner Chilcott (UNKNOWN: WCRX.DL  ) in an all-stock transaction valued at $8.5 billion, the companies announced today.

The proposed deal will expand on the existing specialty pharma business of Actavis, particularly therapeutics in areas including women's health, gastroenterology, urology, and dermatology.

At closing, which is expected by year's end, Warner Chilcott shareholders will receive 0.16 shares of the newly combined company, tentatively called "New Actavis," for each share of Warner Chilcott they own. Based on Actavis' closing price of $125.50 a share on May 17, that amounts to $20.08 for each  Warner Chilcott share, a 43% premium over Warner's 30-day volume-weighted average trading price, ending on May 9. Actavis shareholders will receive one share of New Actavis for each share owned at closing.

New Actavis intends to incorporate in Ireland after closing, and will be led by the Actavis executive management team. Activis CEO and President Paul Bisaro was quoted as saying, "The combination of Actavis and Warner Chilcott creates a strong specialty brand portfolio focused in therapeutic categories with strong growth potential, and is supported by a deep pipeline of development programs."

Existing shareholders of both Actavis and Warner Chilcott must approve the transaction. The boards of directors of each company have unanimously agreed to terms of the deal.


Read/Post Comments (2) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 20, 2013, at 4:03 PM, Roemac wrote:

    I am a novice at this. Did you have to buy the stock on or before May 9 to get the $20.08 per share of WCRX?

    Thank you and I'm sorry if this is a stupid question?

  • Report this Comment On May 21, 2013, at 12:34 AM, DrGoldin wrote:

    No, and you don't get $20.08 anyway. In fact, you don't get any cash at all. You get 0.16 shares of the new company for each share of WCRX that you're holding when the deal is finalized. As of May 17, 0.16 shares of Actavis was worth $20.08, but that can fluctuate. Meanwhile, the deal still has to be approved by shareholders of both companies (though it probably will be).

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2441164, ~/Articles/ArticleHandler.aspx, 9/25/2016 6:49:21 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
AGN $243.94 Up +0.51 +0.21%
Allergan CAPS Rating: ****
WCRX.DL $0.00 Down +0.00 +0.00%
Warner Chilcott CAPS Rating: *****