“The rumours of a substantial deal for Forest have been proven true after Actavis announced this afternoon that it will buy the firm for $25 billion.
The cash-and-share agreement values each Forest share at about $89.48 – a 25% per share premium on Forest’s closing price on Monday (17 February).
In a joint statement Actavis and Forest said that by combining the two firms they could realise as much as $1 billion in synergies.
The deal is expected to close in mid-2014, pending approvals.
Actavis said that if successfully completed: “The transaction will combine two of the world’s fastest-growing speciality pharmaceutical companies, with combined annual revenues of over $15 billion anticipated for 2015”.
The proposed operation has been unanimously approved by the boards of directors at Actavis and Forest, and is ‘enthusiastically supported’ by the management teams of both companies.
On a pro forma combined basis for 2014, the joint company will have around $2 billion in its central nervous system (CNS) business; gastroenterology and women’s health franchises, which is valued at around $1 billion each.”
By Ben Adams
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