Pharmaceutical company Perrigo Company (NYSE:PRGO; TASE:PRGO) today announced that it will acquire Ireland's Elan Corporation plc (NYSE; LSE; Dublin: ELN) for $8.6 billion in cash and shares. Perrigo will pay Elan shareholders $6.25 per share in cash and $10.25 in Perrigo shares, reflecting a 10% premium on Elan's closing price on Friday.
Elan was a tempting acquisition target for Perrigo and other big pharma companies, because of the option of moving the company's headquarters to Ireland to benefit from its low 12.5% corporate tax rate, compared with the 35% tax rate in the US.
Perrigo will finance the acquisition from its own sources and with a $4.35 billion bridge loan from Barclays Bank and HSBC Bank USA.
"Through this transaction, Perrigo establishes a diversified platform for further international expansion,” said Perrigo chairman and CEO Joseph Papa. "We believe the combination of Perrigo and Elan will create an industry-leading global healthcare company."
Published by Globes [online], Israel business news - www.globes-online.com - on July 29, 2013
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