Separate deal will provide $45 million of equity financing to Taro.!--h2>
Sun Pharmaceutical Industries has acquired Taro Pharmaceutical Industries in a transaction worth approximately $454 million. “We intend to build on Taro’s expertise in dermatology and pediatrics along with specialty and generic pharmaceuticals and over-the-counter products,” Sun chairman & managing director, Dilip Shanghvi, remarks. “With the addition of 170 talented scientists to our team we look forward to an increasing number of product filings of higher complexity.”
The agreement with Sun represents the culmination of a process started by Taro on March 20, under which the company sought to address its liquidity issues and contacted over 20 entities. Eventually, Taro's board of directors unanimously determined that the transactions with Sun were preferable to all other available alternatives.
Sun reports that it will pay $7.75 per Taro share in cash, a 27% premium over the $6.10 closing price on May 18. The total equity value of this definitive merger agreement is approximately $230 million, the company adds. Additionally, Sun states that it will also refinance approximately $224 million of Taro’s net debt.
According to a separate deal, Sun immediately will provide $45 million of interim equity financing to Taro by acquiring 7.5 million of the company’s ordinary shares.