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Endo to buy American Medical Systems for $2.6 bn

Endo to buy American Medical Systems for $2.6 bn
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First Published: Mon, Apr 11 2011. 05 59 PM IST
Updated: Mon, Apr 11 2011. 05 59 PM IST
Endo Pharmaceuticals Holding Inc said it will acquire American Medical Systems Holdings Inc , a urological medical devices supplier, for about $2.6 billion in cash to strengthen its core urology franchise.
American Medical shareholders will get $30 per share, a premium of about 34% to the stock’s closing price on Friday.
Endo will also assume $312 million of American Medical’s debt, the companies said in a statement.
The deal is expected to immediately add to Endo’s adjusted earnings in 2011 and to boost 2012 adjusted earnings per share by 60 cents, growing to about 80 cents in 2013.
Endo also expects cost synergies of at least $50 million by 2013.
On a pro-forma basis, the combined company, with 4,000 workers, will have revenue of about $3 billion in 2011, it said.
Endo also stood by its stand-alone outlook for 2011.
Endo said Morgan Stanley and BofA Merrill Lynch have given fully committed financing for the deal, expected to close in the third quarter.
J.P.Morgan Securities LLC acted as financial adviser to American Medical.
Endo Pharma’s shares closed at $40.85 on Friday on Nasdaq.
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First Published: Mon, Apr 11 2011. 05 59 PM IST