The deal creates the fifth-largest generic drugmaker in the country, the new Amneal Pharmaceuticals Inc. said in a news release. Shares of Impax ceased trading Friday, while the new company’s AMRX shares began trading Monday. The transaction was an all-stock deal, with each share of Impax common stock converted into the right to receive one share of Amneal Class A common stock.
“We are very excited for the future of Amneal, and strongly believe that, with our team, differentiated product portfolio, extensive (research and development) and manufacturing infrastructure and expertise, Amneal is well-positioned to become an industry leader,” Chirag Patel and Chintu Patel, co-founders and co-chairmen of Amneal, said in a prepared statement. “We are very proud of the company we have built and look forward to Amneal’s continued success.”
Although Amneal had previously said Impax CEO and President Paul Bisaro would serve as CEO of the combined company, he will serve as executive chairman instead, with former Allergan executive Robert Stewart, who joined the company in advance of the merger, serving as CEO and president.
“As we enter our next stage of growth, we look forward to implementing our integration plans and quickly starting to realize the many benefits of this combination,” Stewart said in a statement. “We will promptly begin to leverage our enhanced product portfolio to fuel organic growth while capturing numerous synergies to unlock value and generate strong cash flow to support the rapid repayment of debt and further investment in growth opportunities.”
Financial terms of the transaction were not disclosed, but Amneal said it expects to generate annual double-digit revenue and adjusted earnings growth.
Amneal also announced the concurrent, $117 million acquisition of Bridgewater-based Gemini Laboratories LLC, which markets and sells branded pharmaceuticals.
JPMorgan Securities LLC was Amneal’s financial adviser, while Latham & Watkins LLP was its legal adviser. Morgan Stanley was Impax’s financial adviser, while Sullivan & Cromwell LLP and McDermott, Will & Emery LLP served as legal advisers. Impax also received advice from BofA Merrill Lynch.