Impax to acquire Tower Holdings and Lineage Therapeutics in a $700 million deal
Friday, October 10, 2014
Impax Laboratories, Inc. (IPXL) today affirmed the execution of a conclusive understanding under which Impax will obtain Tower Holdings, Inc., including working subsidiaries Corepharma LLC and Amedra Pharmaceuticals LLC, and Lineage Therapeutics Inc. (together, the "Organizations") for $700 million in cash, subject to certain monetary adjustments. The secretly held Companies being acquired spend significant time in the improvement, assembling and commercialization of complex generic and branded pharmaceutical items.
The transaction will give Impax an exceedingly gainful and developing marketed portfolio of items that are relied upon to give full year 2014 incomes of nearly $215 million to $225 million and income before interest, expenses, depreciation and amortization (EBITDA) of roughly $80 million to $85 million on a standalone premise.
"This transaction is an important step forward in executing our plan to drive growth and create value through strategic acquisitions that enhance our existing strategies," said Fred Wilkinson, President and Chief Executive Officer of Impax. "The Companies will add a growing, highly profitable, commercial portfolio of generics as well as a lead product in a new brand franchise, which will enhance our brand division and enable us to utilize our brand commercial infrastructure more efficiently. The acquisition also adds a branded and generic pipeline that includes a number of near-term opportunities. In addition, Impax will gain an established campus in New Jersey focused on R&D, manufacturing, packaging and supply chain management. Further, this accretive transaction will move Impax to a more efficient capital structure, while also preserving our ability to pursue additional external strategic growth opportunities."
