Three months after failing in its bid to acquire Perrigo, Mylan has leapt on the merger merry-go-round again to buy Sweden’s Meda.
The deal is valued at $9.9 billion, or $7.2 billion excluding debt and the 165 Swedish kroner paid represents a 92% premium. The offer has already been accepted by Meda’s two largest shareholders, who own about 30% of its outstanding shares.
For its money, Mylan has now moved into the over-the-counter space and will have a $1 billion OTC business at close. It will also gain entry into new growth markets such as China, Southeast Asia, Russia and the Middle East.
The combined entity will have sales of $11.8 billion for 2015 and adjusted pretax earnings of approximately $3.8 billion. It will also have “a balanced portfolio of more than 2,000 products across the branded/specialty, generics and OTC segments, sold in more than 165 markets around the world”, Mylan added.
The transaction will build on Mylan’s recent acquisition of Abbott’s non-US developed markets specialty and branded generics business “to create an unparalleled European platform for growth [and] consolidates the EpiPen Auto-Injector for allergic reactions in Europe, which until now has been partnered with Meda.
The deal also could create about $350 million in annual pretax synergies by the fourth year after closing.