Bristol-Myers Squibb Co. (BMY: Quote) has agreed to acquire Amylin Pharmaceuticals, Inc. (AMLN: Quote) for $31 per share in cash, pursuant to a cash tender offer and second step merger, for a purchase price of about $5.3 billion. Including Amylin's net debt and a contractual payment obligation to Eli Lilly & Co. (LLY: Quote) that together total about $1.7 billion, the total value of the transaction is about $7 billion.
The acquisition has been unanimously approved by the boards of directors of Bristol-Myers and Amylin. The board of directors of Amylin has unanimously recommended that Amylin's stockholders tender their shares into the tender offer. The companies expect the tender offer to close about thirty days after commencement of the tender offer.
Bristol-Myers and AstraZeneca plc (AZN: Quote,AZN.L) said that following the completion of Bristol-Myers' acquisition of Amylin, the companies will enter into collaboration arrangements, based on the framework of the existing diabetes alliance, regarding the development and commercialization of Amylin's portfolio of products.
Bristol-Myers expects the transactions are expected to be dilutive to adjusted earnings per share in 2012 and 2013 by approximately $0.03, becoming slightly accretive starting in 2014 with meaningful accretion expected in the later part of the decade.
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by RTT Staff Writer
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