Pfizer to acquire King Pharmaceuticals for $3.6 billion in cash

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Pfizer to acquire King Pharmaceuticals for $3.6 billion in cash

2010-10-12 20:23:31 GMT+7 (ICT)

NEW YORK (BNO NEWS) -- Pfizer and King Pharmaceuticals on Tuesday announced that they have entered into a definitive merger agreement in which Pfizer will acquire King for $3.6 billion in cash, or $14.25 per share.

The transaction represents a premium of approximately 40 percent to King's closing price as of October 11, 2010 and 46 percent percent to the one-month average closing price as of the same date. The companies said the transaction was approved by the boards of both companies.

The merger agreement will further expand Pfizer's business profile, providing a prescription pharmaceutical business focused on delivering new formulations of pain treatments, the Meridian auto injector business for emergency drug delivery, and an animal health business that offers a variety of feed additive products for a wide range of species.

"This strategic combination will allow Pfizer to leverage its existing commercial capabilities and expertise to create one of the leading broad portfolios for pain relief and management in the biopharmaceutical industry," the companies said.

Pfizer anticipates the transaction to yield initial cost savings from operating expenses of at least $200 million, which are expected to be fully realized by the end of 2013.

The transaction is not expected to impact Pfizer's 2010 financial guidance, the company said, adding the company continues to expect to achieve its 2012 financial targets.

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