Teva to acquire Cephalon for $6.8 billion

Teva to acquire Cephalon for $6.8 billion

2011-05-03 21:32:18 GMT+7 (ICT)

FRAZER, PENNSYLVANIA (BNO NEWS) -- Teva Pharmaceutical Industries Ltd. on Tuesday announced that it will acquire Cephalon, Inc. for approximately $6.8 billion.

The definitive agreement under which Teva will acquire all of the outstanding shares of Cephalon for $81.50 per share in cash, which represents a 39 percent premium to Cephalon's stock price on March 29, was unanimously approved by both companies' Boards of Directors.

The combined company's sizable branded portfolio will have more than 20 branded products, representing approximately $7 billion in sales, with a robust pipeline including more than 30 late-stage compounds.

With the acquisition, Teva will add Cephalon's 4,000 employees to its 40,000 worldwide employees.

In 2010, Teva reported a revenue of $16.1 billion, while its net income was stated at $3.3 billion, or $3.67 per share. Meanwhile, on the same year, Cephalon reported net income of $425.7 million, or $5.27 per share, on $2.81 billion in revenue.

The transaction is not conditioned on financing and is expected to be completed in the third quarter of the year. Teva intends to finance the transaction through cash on hand, lines of credit and the public debt market.

The transaction is subject to the satisfaction of customary closing conditions, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and clearance by the European Commission under the EC Merger Regulation, as well as the approval of Cephalon stockholders.

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