Actavis, a global specialty pharmaceutical company, will acquire Auden Mckenzie, a company focused on the development, licensing and marketing of niche generic medicines and proprietary brands in the U.K., for approximately $461.8 million in cash, plus a two-year royalty on a percentage of gross profits of one of Auden Mckenzie's products.
Auden Mckenzie will be acquired on a debt-free basis, and the transaction will exclude Auden Mckenzie's real estate portfolio.
The acquisition will make Actavis the number one supplier of generic pharmaceuticals in the U.K. Actavis will hold the number three position in the supply of U.K. pharmaceuticals. The acquisition of Auden Mckenzie is expected to be immediately accretive to Actavis' non-GAAP earnings in 2015.
Actavis currently markets more than 650 generic products in the U.K. and has approximately 85 additional products under registration and development. The combination with Auden Mckenzie is anticipated to add approximately 175 new generic and branded products, as well as a pipeline of approximately 40 additional products, in various dosage forms, for treatments across a broad spectrum of therapeutic areas. The acquisition is subject to certain conditions, including approval by regulatory authorities, and is expected to close in the first quarter of 2015.
"Since its inception in 2000, Auden Mckenzie has established a notable position among the U.K. niche generic businesses by adopting a dynamic and entrepreneurial approach to developing and marketing generic medicines," said Amit Patel, managing director of Auden Mckenzie. "We see in Actavis a company with the same entrepreneurial qualities. With its multinational resources and scope, Actavis will be able to achieve further growth based on Auden Mckenzie's existing products and pipeline of new products."