Teva Pharmaceutical will pay approximately $360 million to acquire Bentley Pharmaceuticals and bolster its position in the Spanish market. The acquisition will take place following the spin-off of Bentley’s drug delivery business to its shareholders, which was announced on October 23, 2007.
Teva will tender approximately $15.02 per Bentley share, a 9.3% premium over Bentley’s closing value on the last trading day. Bentley’s stock, however, jumped above the offer price to open today at $15.20.
Bentley manufactures and markets a portfolio of approximately 130 pharmaceuticals as branded generic and generic products. This business is primarily in Spain. The company also has finished-dosage and API manufacturing facilities. Bentley’s generic pharmaceutical operations generated $113.56 million in revenues last year.
“This is an important acquisition for Teva, as the combination of Teva Spain and Bentley will provide us with a platform to capture a leading position in the fast-growing Spanish generic pharmaceutical market,” comments Shlomo Yanai, Teva’s president and CEO.
Teva expects the transaction to become accretive within 12 months of closing. James Murphy, CEO and board chairman, as well as Michael McGovern, vice chairman, who reportedly hold an aggregate of about 13.8% of Bentley’s outstanding stock, have agreed to vote in favor of the takeover. Closing is anticipated to take place in the third quarter.