Elan Corporation (ELN) announced today that its shareholders voted definitively in favor of approving the acquisition of Elan by Perrigo Company (PRGO -0.33%).
At two meetings, one a special court-ordered meeting and the other an extraordinary general meeting, roughly 66% of the company's shares outstanding were represented. Of those present, approximately 99.5% voted in favor of the proposed acquisition, said Elan.
Perrigo Company announced today its shareholders had approved the proposals related to the Elan acquisition. Under the deal, which still needs certain certain regulatory approvals and approval by the Irish High Court, each Elan shareholder will receive $6.25 in cash and 0.07636 shares in New Perrigo (which will be the name of the new company) for each Elan share they own.
"We believe the combination of Perrigo and Elan will create an industry-leading global health care company with the balance sheet liquidity and operational structure to accelerate our growth and capitalize on international market opportunities," said Perrigo CEO Joseph Papa of the transaction back in July. The $8.6 billion acquisition of Elan by Perrigo was first announced in July of this year.
"This is an excellent transaction for Elan shareholders and provides them with cash consideration as well as the opportunity to benefit from the potential upside value of the new company," said the chairman of Elan, Robert Ingram, back in July. "We have the confidence in [Papa] and his leadership team to continue to grow and expand its presence on a global scale."
The transaction is anticipated to close by the end of 2013. In its merger benefit letter, Perrigo noted that it anticipates it will realize $150 million in recurring after-tax savings in operating expenses as a result of the transaction, 80% of which will be realized within the first year following the close of the transaction.
