Par Pharmaceutical Companies, Inc. has entered into a definitive merger agreement to be acquired by an affiliate of TPG in a transaction valued at $1.9 billion. Par shareholders will receive $50.00 in cash for each share of Par stock, representing a premium of approximately 37% over the closing share price on July 13, 2012. The agreement was approved by Par's board of directors.
Patrick G. LePore, Par's chairman and chief executive officer, said, "We are excited about this transaction as it delivers compelling value to our shareholders. While my focus and that of the Par Board of Directors was on shareholder value, we are very pleased that Par will be acquired by TPG, a leading global private investment firm whose substantial Resources and healthcare experience will enable Par to continue to invest in its future long-term growth."
"We are excited for the opportunity to invest in Par, a leading generic pharmaceutical company that has a long track record of success via its focus on complex products and its strong, diversified product pipeline," said Todd B. Sisitsky, partner at TPG. "The company is positioned to benefit from the strong macro trends of a greater focus on cost effective healthcare solutions and the increasing demands from an aging population. We look forward to partnering with this talented management team to continue developing an attractive platform for expansion."
The transaction, subject to customary closing conditions, is expected to close in 2012. Under the terms of the merger agreement, Par may solicit superior proposals from third parties through August 24, 2012.