Akorn and Hi-Tech Pharmacal announced that they have entered into definitive M&A deals under which Akorn will acquire Hi-Tech for $640 million in cash.
Hi-Tech, the company being acquired in the M&A deals, is a specialty pharmaceutical company developing, manufacturing and marketing generic and branded prescription and over-the-counter products.
Hi-Tech specializes in difficult to manufacture liquid and semi-solid dosage forms and produces and markets a range of oral solutions and suspensions, as well as topical ointments and creams, nasal sprays, otics, sterile ophthalmics and sterile ointment and gels products.
Hi-Tech’s Health Care Products division is a leading developer and marketer of OTC products.
Hi-Tech's ECR Pharmaceuticals subsidiary markets branded prescription products.
Under the terms of the M&A deals, Akorn will pay $640 million in cash, or $43.50 per share.
This represents a 23.5% premium over the closing price on August 26.
Akorn expects to achieve between $15 million and $20 million in annual run-rate synergies within 12 months of close.
The combined company resulting from the M&A deals, is expected to have annual revenues in excess of $500 million and the transaction is expected to be accretive to Akorn’s non-GAAP adjusted earnings per share immediately upon closing.
Assuming the transaction occurred on January 1, 2013 and assuming the full realization of synergies, the acquisition would have been approximately 40% accretive to Akorn’s expected 2013 non-GAAP adjusted earnings per share.
Report: Diabetes Partnering
View: Current Partnering’s M&A Scorecard – view top life science M&A deals by value
View: Current Partnering’s Deal Metrics – the latest deal trend infographics for life science deal making
View: Current Partnering’s Big Pharma Deal Making Scorecard – latest trends in big pharma deal making activity
View: Current Partnering’s Big Biotech Deal Making Scorecard – latest trends in big biotech deal making activity