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Concordia Healthcare to Buy Amdipharm Mercury for $3.5 Billion, Continues Acquisition Spree

Sep 09, 2015 04:29 AM EDT | By Don Gil Carreon
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Concordia, Amdipharm Mercury, Cinven
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Screencap of Concordia website
(Photo : Screencap of Concordia website)

Concordia Healthcare Corp. announced a deal to buy drugmaker Amdipharm Mercury Ltd. (AMCo) from a group of investors led by European private equity firm Cinven for $3.5 billion.

Bloomberg reported that the payment will be in cash and shares and the deal will close in the fourth quarter.

In a statement, Mark Thompson, chairman and chief executive of Concordia, said the acquisition bolsters the company's portfolio of products and management team.

"The combination of our highly complementary yet geographically diverse businesses is truly transformational. It will uniquely position the combined company as a leading, international pharmaceutical company with extensive geographic reach, a diversified and attractive product portfolio, and an asset-light business model that we expect will allow us to focus investments and resources on further growing our business," he said.

The combined company is expected to book up to $920 million and $540 million in revenues and Ebitda for full year 2015.

Bloomberg noted that Concordia has been aggressively pursuing acquisition under Thompson, who sees it as key to growing the company. It noted that the Canadian company has announced or completed six deals worth at least $1.5 billion. The report noted that Concordia's shares have tripled in the past year and rose 3.1 percent to C$110.60 on Monday.

In the same statement, John Beighton, Chief Executive Officer of AMCo, said that the merged firm will be able to further drive organic growth and explore more opportunities for merger and acquisitions.

The companies said that with the combination, no single product will account for a tenth of sales and sales operations will reach more than 100 countries.

"AMCo provides strong competitive position on the vast majority of its products, driven by complexities in their manufacturing and regulatory processes. The acquisition will provide Concordia with a well-diversified niche portfolio of more than 190 well-established off-patent molecules, as well as entry into new therapeutic areas such as endocrinology, ophthalmology and urology," the statement added.

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