APP Pharma Merges with Fresenius
Fresenius will rapidly gain scale in North American injectables division, chairman says.
July 7, 2008
APP Pharmaceuticals merged with Fresenius SE, it was announced Monday. Under the terms of the deal, Fresenius will acquire APP for $23 per share in cash, and if certain targets are met by the acquired, this will rise by $6 per share.
The deal is worth, now, $3.7 billion, but could increase to as much as $4.6 billion.
Should APP successfully reap each portion of the transaction, the purchase price represents a premium of 63% on where the company’s stock was trading prior to the holiday weekend.
APP will join the Fresenius Kabi division, the German firm’s injectable generics market, the joint announcement stated.
“The acquisition provides significant growth opportunities for Fresenius Kabi,” said Ulf Mark Schneider, Fresenius SE chairman. “With the APP platform, Fresenius Kabi will be able to market its product range in the U.S. Fresenius Kabi’s international marketing and sales network will allow us to sell APP’s products globally.”
Investors were apparently bullish on APP’s ability to meet its longer-term goals; the company’s stock traded in early Monday afternoon in excess of 30%, hitting $23.68 per share.
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