facebook
twitter
search
search

Perrigo to buy Elan for $6.7 billion

July 29, 2013 at 4:03 PM

ALLEGAN, Mich., July 29 (UPI) -- U.S. healthcare products giant Perrigo said Monday it would buy Irish biotechnology corporation Elan for $6.7 billion in a stock and cash transaction.

Perrigo, which has its headquarters in Allegan, Mich., said the merger was predicted to erase $150 million in redundant operating costs.

The terms of the deal include a payment of $6.25 in cash for every Elan share plus 0.07636 shares of New Perrigo.

That would value each Elan share at $16.50, based on the closing price of Perrigo shares on July 26, the company said in a statement.

The prices is a 10.5 percent premium based on pricing after the July 26 close of markets.

The deal will result in a company, which will be based in Dublin, Ireland, the company said. It will be called New Perrigo "or a variant thereof," the companies said.

"We believe the combination of Perrigo and Elan will create and industry-leading global healthcare company," said Perrigo Chairman and Chief Executive Officer Joseph Papa.

Related UPI Stories
Latest Headlines
Trending Stories
Ted Cruz campaign pulls ad featuring softcore porn actress
Report: Clinton Foundation subpoenaed by State Dept. watchdog over charity projects
Ruby Rose, Gigi Hadid react to Kanye West's lyric about Taylor Swift
Kristen Wiig impersonates Peyton Manning on 'The Tonight Show'
NYC police officer found guilty of manslaughter in Brooklyn stairway shooting