Actavis scoops rival for €62bn

A Dublin-headquartered pharmaceutical giant has completed its takeover of a US rival for $66bn (€62bn).

Actavis sealed the deal to acquire Allergan in a cash and equity transaction in a move that catapults the combined entity into the world’s top 10 pharma firms by sales revenue.

The acquisition went through after the European Commission gave it its blessing, removing the final hurdle to its completion.

“The combination of Actavis and Allergan creates an exceptional global pharmaceutical company and a leader in a new industry model — growth pharma,” said Actavis chief executive Brent Saunders.

“Anchored by world-renowned brand franchises, a leading global generics business, a premier pharmaceutical development pipeline and an experienced management team committed to maintaining highly efficient operations across the organisation, we are creating an unrivalled foundation for long-term growth.”

Although headquartered in Dublin, Actavis is essentially a US-coordinated company with administrative headquarters in New Jersey and listed on the New York Stock Exchange.

The company is one of those to have completed an inversion into Ireland to take advantage of the more favourable tax rates — the type of deal that has drawn scorn from US policymakers.

The $5bn acquisition of Warner Chilcott in May 2013 allowed Actavis to transfer the combined company’s new headquarters to Dublin, although the tax benefits of the deal were described as the “icing on the cake” and secondary to Warner Chilcott’s portfolio of drugs.

Largely known for its generic drugs range, Actavis is branching out by acquiring Allergan, best known for making botox.

The Dublin-based firm previously announced its intention to to adopt the Allergan name.

“By adopting the Allergan name for the corporation we will ensure that our corporate identity reflects the dramatic evolution of our company within the pharmaceutical industry,” Mr Saunders said last month.

Combined revenues of the new entity are expected to reach over $23bn in 2015.

Some $1.8bn in operating and financial synergies alone is also expected from the deal before taking account of additional manufacturing synergies expected to realise further savings in the region of $475m.

Actavis also expects to generate strong operating cash flow in excess of $8bn in 2016, which it expects will enable it to significantly de-leverage its balance sheet.