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 © 2014 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] The major averages posted solid gains ahead of tomorrow's policy directive from the Federal Open Market Committee. The S&P 500 rallied 0.8%, while the Russell 2000 (+0.3%) could not keep pace with the benchmark index.
Equity indices hovered near their flat lines during the first two hours of action, but surged in reaction to reports from the Wall Street Journal concerning tomorrow's FOMC statement. Specifically, Fed watcher Jon Hilsenrath indicated that the statement ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'