Pfizer to Buy King Pharmaceuticals for $3.6 Billion
October 12, 2010
PRNewswire reports, Pfizer Inc. and King Pharmaceuticals, Inc. announced that they have entered into a definitive merger agreement. Under the terms of the agreement, Pfizer will acquire King, a diversified specialty pharmaceutical discovery and clinical development company, for $3.6 billion in cash, or $14.25 per share, which represents a premium of approximately 40-percent to King''s last closing price. The transaction was approved by the boards of both companies and will further expand Pfizer''s business profile, providing immediate, incremental diversified revenues generated by King''s portfolio, including a prescription pharmaceutical business focused on delivering new formulations of pain treatments designed to discourage common methods of misuse and abuse, the Meridian auto- injector business for emergency drug delivery, which develops and manufactures the EpiPen® and is a long-term, critical supplier to the U.S. Department of Defense, and an animal health business that offers a variety of feed additive products for a wide range of species. King''s three key businesses are not only complementary to Pfizer''s businesses, but are also strategically aligned with Pfizer''s Primary Care, Established Products and Animal Health business units, enabling a seamless combination that will maximize King''s assets with Pfizer''s global organization''s scale and resources. In addition, the tender offer is subject to regulatory approval in the U.S. and other jurisdictions. The companies are targeting a late fourth-quarter 2010 or first-quarter 2011 closing assuming execution of the tender process and receipt of the appropriate regulatory clearances.