--> LCI +18% After Hours
Lannett to acquire Kremers Urban Pharmaceuticals for $1.23 bln; expects the deal to be accretive to adjusted EPS in FY16 in the mid-high single digits and 20-25% in FY17
The co announced that it has signed a definitive agreement to purchase Kremers Urban Pharmaceuticals Inc., the U.S. specialty generic pharmaceuticals subsidiary of global biopharmaceuticals company UCB S.A., for $1.23 billion, plus potential contingency payments. Lannett believes the acquisition will be accretive to adjusted EPS in fiscal 2016 in the mid- to high-single digits and 20% to 25% in fiscal 2017. Lannett expects to receive a significant tax benefit with a value in excess of $100 million.
- Lannett expects to fund the transaction with a combination of a fully committed term loan and cash on hand.
- The transaction, subject to regulatory approval and other customary closing conditions, is expected to close in the fourth quarter of calendar 2015 and has been unanimously approved by the Boards of Directors of Lannett and UCB.