DUBLIN, Ireland, Feb. 18 (UPI) -- Irish drug maker Actavis says it has agreed to buy U.S. rival Forest Laboratories for $25 billion, which includes a 25 percent premium for Forest shareholders.
The deal is a cash-and-stock proposal that would create a company with annual revenue of $15 billion that would be 35 percent owned by Forest shareholders. Each Forest share in the deal would be offered $25.04 plus 0.3306 Actavis share, the Wall Street Journal reported Tuesday.
Actavis Chief Executive Officer Paul Bisaro will head the new company, while Forest CEO Brent Saunders will join the Actavis board. In addition, three Forest board members will join the board after the close.
Saunders, who negotiated a merger for his former company, eye care firm Bausch & Lomb, is expected to play a major role at Actavis.
Activist investor Carl Icahn, who owns 11 percent of Forest, called the deal "yet another validation of the activist investment philosophy."