Act, Frx: Actavis To Buy Forest Labs For Up To $25b

Actavis act stock 300x145 ACT, FRX: Actavis to Buy Forest Labs for up to $25B

The merger would create a company with forecasted revenues to be at about $15 billion by 2015 and free cash flow of over $4 billion. ACT stock is up 8% pre-market on the news. FRX stock is up 30%. The official announcement could come today. The deal would be the second largest for a U.S. publiccompany this year, afterlast weeks $45.2 billion Comcast deal with Time Warner. The price represents a premium of 25% over Forest Laboratories close on Friday of $71.39. The firms project potential operating and tax synergies of $1B, not including manufacturing or revenue synergies. Actavis CEO Paul Bisaro will lead the new firm, while Forest CEO Brent will join Actavis board. In total, three Forest directors will gain seats on Activis board. The combined company would create a vast product franchise in the areas the companies deal: gastroenterology, womens health, urology and cardiovascular therapy. The move would help both companies better position themselves in global outreach. Actavis is amid a business reorganization plan.The drugmaker is looking to segue into being a speciality pharma firm focusing on developing drugs that aid womens health including treatments for urology, gastroenterology and dermatology related ailments. Article printed from InvestorPlace Media, 2014 InvestorPlace Media, LLC

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