Ireland-based Actavis has agreed to buy privately owned Auden Mckenzie for £306m ($461m) in a deal that will make it the biggest generics company in the UK.
The latest deal adds around 175 generic and specialty pharmaceutical products to Actavis’ 650-strong portfolio – along with another 40 in the pipeline – and bolsters the Irish firm’s position in sterile injectables such as Synastone (methadone) for treating heroin addiction.
Actavis is no stranger to growth by acquisition and the new deal comes after a busy 2014 which saw the company sign a string of takeover deals – headed by a $66bn merger with US specialty drugmaker Allergan that was forged despite competition from Valeant and has yet to close.
Other acquisitions in the last 12 months have included $25bn for Forest Laboratories, $2.9bn for Aptalis, a $1.6bn deal for Furiex Pharma and $675m for Durata. All told, the tally of M&A spending under chief executive Brent Saunders – who took over at Actavis last May – is now almost $100bn.
The Irish firm claims that when the Allergan and Auden Mckenzie deals close it will become the third-largest pharmaceutical manufacturer in the UK.
As a privately held company Auden Mckenzie’s financial figures are not disclosed, but Actavis described the business as “profitable and growing” and in 2012/13 the company earned a reported £29m on sales of around £52m.
The latest acquisition will be made with cash and – subject to approval by regulatory authorities – is expected to close before the end of the first quarter. Shareholders in Auden Mckenzie will also get a two-year royalty on a percentage of gross profits for one of the company’s products.
“This strategic combination is highly synergistic with our UK business, is immediately and highly accretive and reflects our commitment to invest to achieve a top position in key international markets,” commented Robert Stewart, Actavis’ chief operating officer.
Amit Patel, managing director of Auden Mckenize, said the two companies shared a “dynamic and entrepreneurial approach to developing and marketing generic medicines.”