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.

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