Actavis plc. Get done with its Allergan acquisition worth of $70.5 Billion
The Allergan acquisition makes Actavis one of the world’s largest drug-makers in terms of sales revenue.
Actavis Plc. declared that it has accomplished its deal $70.5 billion worth of deal of acquiring Allergan Inc. In terms of sales revenue the following acquisition makes the joint venture join the top ten pharma companies of the world. The company after acquisition will now possess a diversified treatment portfolio that includes skin care, eye and stomach infection drugs.
After finishing off the deal, Actavis is most likely to pocket almost $23 billion worth of sales for the fiscal year 2015, and increasing its market cap to approximately $128 billion. The sale employees are also likely to cross the 30,000 mark. Michael Gallagher and Peter J McConnell have been placed into the newly join company, who were directors at Allergan previously.
Although, the company made an announcement that David Pyott –a top executive of Allergan is not going to join Actavis. He said , “I am excited for the opportunity to pursue new interests, including my work with a few public company boards, several universities in the U.S. and the UK and ophthalmic charities whose goals are to improve eye health in emerging markets.”
The following deal will provide a sales boost to Actavis, as the joint venture is most likely to see over 10% increases in revenue.
There were rumors about the companies’ merger last year in November, but later in same month Actavis announced that it has decided to buy Allergan for $66 billion. The offer made by the company was much better than that of Valeant Pharmaceutical Intl Inc. who was trying to pursue the company for so long. The bid was raised by Valeant twice, however the company declined to come into a deal with it , by mentioning that its stock and cash bid was low priced and much more riskier. Actavis by taking an advantage of the situation make a bid more than existing bid by Valeant and eventually succeeded in acquiring the company.
An active investor in Valeant and Actavis Bill Ackman was looking for the acquisition of Allergan for quite a few months. Before even Valeant placed its bid an investment company Pershing Square Capital Management LP, had already bought 10% stock in the company.
The Botox maker had lawsuit against both Pershing and Valeant; it sued to eliminate the Capital firm stake and claim said that it has been acquired by breaking the regulations of insider trading. However, both the companies claim that the practice was all legal.
Eventually, the Botox maker refused the Valeant offer and decided to carry on with Actavis bid of $216 against each share.as per the contract, it was required pay 60% of the total amount in cash while remaining in shares.
