Fresenius paying $3.7B for US drugmaker APP
July 7, 2008
According to the Associated Press, Fresenius SE said recently it has agreed to buy U.S. generic drug maker APP Pharmaceuticals for $3.7 billion in cash in a deal that will give the German health care company more opportunities in the North American market for drugs administered intravenously.
Fresenius will pay $23 a share for the Schamburg, Ill.-based APP Pharmaceuticals in the deal, along with a registered and tradable contingent value right that could result in as much as $6 a share, provided APP reaches adjusted pretax profit targets from 2008 to 2010, the companies said in a statement.
The $23 a share price is a 29 percent premium over APP Pharmaceutical''s closing price on the last day of trading in New York before the July Fourth holiday.
APP will be combined with the U.S. subsidiary of Fresenius Kabi, the companies said. APP founder Dr. Patrick Soon-Shiong, who holds more than 80 percent of APP''s stock, was on board for the deal.
APP employs some 1,400 workers and operates production facilities in New York, Puerto Rico, Toronto and in Illinois. Its drug portfolio includes more than 100 products used for oncology, intensive care and anesthesia, along with fighting infections.
In 2007, APP reported a pretax profit of $253 million on sales of $647 million.
Fresenius employs more than 116,000 workers worldwide and last year posted sales of 11.4 billion euros ($17.9 billion).