Amneal Pharmaceuticals Inc. will acquire almost all of Kashiv Specialty Pharmaceuticals LLC in a $100 million deal with its parent, Kashiv BioSciences LLC, the Bridgewater-based company announced Tuesday.
Amneal, through a wholly owned subsidiary, will acquire a 98% interest in the unit that focuses on complex generics, drug delivery platforms and novel drugs, it said in a news release.
“The acquisition of Kashiv Specialty aligns strongly with our Amneal 2.0 growth strategy, which we expect will deliver substantial value for our specialty and generics businesses,” co-CEO Chirag Patel said in a prepared statement.
Amneal will pay $70 million in cash at the closing of the deal and another $30 million in cash at the one-year anniversary of the agreement. Another $8 million in contingency payments are possible, along with certain royalty payments.
The deal is expected to close in the second quarter, pending customary conditions and approvals.
RBC Capital Markets LLC is financial adviser to the Conflicts Committee of the Amneal board of directors, while Shearman & Sterling LLP is its legal counsel and L.E.K. Consulting LLC and the Weinberg Group Inc. are consulting advisers. Holland & Knight LLP is Kashiv’s legal counsel.