Watson Pharmaceuticals has entered into an agreement to acquire Actavis Group for approximately $5.6 billion, expanding its international presence as one of the world's biggest generic drug suppliers. The acquisition also enhances Watson's business in generic injectable cancer drugs. The transaction is expected to close in the fourth quarter.
Under the agreement, Watson will make an upfront payment of $5.6 billion. Actavis stakeholders are also eligible to receive a payment valued at $330 million during negotiations should Actavis achieve certain 2012 performance targets.
"In a single commercially compelling transaction, we more than double Watson's international access and strengthen our commercial position in key established European markets as well as exciting emerging growth markets, including Central and Eastern Europe and Russia," said Watson chief executive officer Paul Bisaro.