Specialty pharmaceutical company Par Pharmaceutical Companies, Inc. (PRX: Quote) agreed Monday to be taken private by an affiliate of private equity firm TPG for $50.00 per share in an all-cash deal valued at $1.9 million.
The deal, which is primarily subject to approval of a majority of Par's outstanding shares, is expected to close in 2012. The deal has the unanimous approval of Par's board.
"We are excited for the opportunity to invest in Par, a leading generic pharmaceutical company that has a long track record of success via its focus on complex products and its strong, diversified product pipeline," TPG Partner Todd Sisitsky said in a statement.
The offer price represents a 37 percent premium over the Par Pharma's closing share price of $36.58 on Friday.
Following the announcement, Par Pharma's shares are surging more than 36 percent in pre-market trading in a bid to match the offer price. The deal is not subject to a financing condition.
The deal will see TGP "benefit from the strong macro trends of a greater focus on cost effective healthcare solutions and the increasing demands from an aging population."
The terms of the deal provides for generic drug maker Par Pharma to solicit superior proposals from third parties through August 24.
TPG is a leading global private investment firm founded in 1992 with $51.5 billion of assets under management, with extensive experience with global public and private investments. The firm's major investments in the healthcare sector include Aptalis Pharma, Biomet, Immucor, and IMS Health.
"While my focus and that of the Par Board of Directors was on shareholder value, we are very pleased that Par will be acquired by TPG, a leading global private investment firm whose substantial resources and healthcare experience will enable Par to continue to invest in its future long-term growth," Par's Chairman and CEO Patrick LePore noted.
PRX closed Friday's regular trading session at $36.58, up $0.57 on a volume of 0.11 million shares, higher than the three-month average volume of 0.39 million shares. In the past 52-week period, the stock has been trading in a range of $24.85 to $42.80.
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by RTT Staff Writer
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