Hospira Announces $2 Billion Agreement to Acquire Mayne Pharma
Hospira, Inc. and Mayne Pharma Limited announced that the companies have entered into an agreement for Hospira to acquire Mayne. Under the terms of the agreement, Mayne shareholders will receive AUD$4.10 cash per outstanding ordinary share of Mayne, or a total equity consideration of approximately AUD$2.6 billion (US$2.0 billion), including options. The transaction represents a 32 percent premium over Mayne's Sept. 18, 2006, closing price.
"This combination will create the leading generic injectable pharmaceuticals company in the world -- delivering unparalleled value to the global healthcare system as well as our respective shareholders and employees," said Christopher B. Begley, chief executive officer, Hospira. "The Mayne acquisition more than doubles Hospira's international presence and significantly accelerates the expansion of our generic injectables business."
The transaction is subject to Mayne shareholder, regulatory and court approvals, as well as customary closing conditions. Assuming all necessary approvals are secured, the transaction is expected to be completed by the end of the current calendar year.
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