Endo Pharmaceuticals to buy Qualitest
The privately held generics company will sell for about $1.2 billion in cash.
By Andrea Tse, TheStreet
Endo Pharmaceuticals (ENDP) said Tuesday it will buy privately held U.S. generics company Qualitest Pharmaceuticals for about $1.2 billion in cash.
Endo said it intends to finance the purchase using $500 million in cash from its balance sheet, plus an existing $300 million revolving credit facility. The company also said it has secured financing for up to $400 million. The transaction is expected to close late in the fourth quarter or early in the first quarter of 2011.
The company expects the transaction to immediately add to earnings in the first full year after the close. After the deal closes, Endo anticipates Qualitest will add about $400 million in annualized revenue and 40 cents in annualized adjusted earnings per share.
Endo also expects revenue growth of the combined generics business to be at least 15% over the next two years. The company expects to realize a $30 million annualized cost synergy run-rate in 2013.
Pro forma for fiscal 2010, the combined company would have had revenue of about $2 billion and more than 3,000 employees, Endo said.
Endo said Qualitest is the sixth-largest U.S. generics company, as measured by prescriptions filled.
Endo reiterated its 2010 revenue guidance of between $1.63 billion and $1.68 billion and full-year adjusted earnings per share of between $3.30 and $3.35. Analysts, on average, expect full-year earnings of $3.35 a share on revenue of $1.67 billion.
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] Equity indices settled on their lows following a steady, session-long slide. Similar to yesterday, small-caps paced the retreat as the Russell 2000 fell 1.6%, extending its December loss to 3.6%. The S&P 500 settled lower by 1.1%, widening its month-to-date decline to 1.3%.
There was no specific news catalyst behind today's slide, which had the markings of broad-based profit-taking. Seven of ten sectors settled with losses of 1.0% or more while only two groups ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
LATEST MARKET DISPATCHES
- No more Dispatches; here's where to find market news
The Market Dispatches column has been discontinued. Here's where to find the latest stock and business news on MSN Money, and the latest from market writer Charley Blaine.
- Dow falls 59 as late-day gloom kills a rally
- Stocks held back by fiscal-cliff worries
- Stocks suffer worst weekly loss in 5 months
- Dow off 121 as post-election swoon continues
- Dow slumps 313 after Obama's re-election
- Dow jumps 133 as Americans head to the polls
The offering could become the second-biggest this year if underwriters exercise an option to buy more shares.