TPG, Par Pharmaceuticals may merge Par Pharmaceuticals Companies, Inc. recently announced it entered into a merger agreement with an affiliate of TPG for an estimated equity value of $1.9 billion.

TPG cited Par's strong supply chain as incentive for the deal, in which shareholders of Par will receive $50 per share of common stock, which represents a premium of 37 percent over the closing share price on July 13.

"We are excited for the opportunity to invest in Par, a leading generic pharmaceutical company that has a long track record of success via its focus on complex products and its strong, diversified product pipeline," said Todd Sisitsky, partner at TPG. "The company is positioned to benefit from the strong macro trends of a greater focus on cost effective healthcare solutions and the increasing demands from an aging population. We look forward to partnering with this talented management team to continue developing an attractive platform for expansion."

The deal is still not completely done. The close of the deal is conditioned on the affirmative vote of the holders of a majority of Par Pharmaceuticals' outstanding shares, clearance under an antitrust act from 1976 and other conditions.

The board of directors at Par was recently placed under investigation for potential breaches of fiduciary duty in relation to this agreement, which could affect the deal.
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