BioCentury
ARTICLE | Company News

Actavis to acquire Warner Chilcott

May 21, 2013 12:23 AM UTC

Generics company Actavis Inc. (NYSE:ACT) will acquire specialty pharma Warner Chilcott plc (NASDAQ:WCRX) in a stock deal that values Warner Chilcott at about $5 billion. Warner Chilcott shareholders will receive 0.16 Actavis shares per Warner Chilcott share held or about $17.09 per share based on Actavis' close of $106.81 on May 9, before the companies announced they were in negotiations to merge. Actavis will also assume about $3.4 billion of Warner Chilcott's net debt (see BioCentury Extra, May 10).

The deal, which has been approved by the boards of both companies and is subject to shareholder approval, is slated to close by year end. Warner Chilcott shareholders will own about 23% of the new company, which will be named Actavis plc and be incorporated in Ireland. BofA Merrill Lynch and Greenhill are advising Actavis; Deutsche Bank is advising Warner Chilcott. ...