King Pharma to acquire Alpharma for around $1.6 billion

25 November 2008

Contract manufacturer and seller of branded prescription products King Pharmaceuticals Inc and Alpharma Inc have announced the inking of a definitive merger agreement.

As per the agreement, King Pharmaceuticals will acquire all outstanding shares of Class A common stock of Alpharma for $37 per share in cash, for a total equity value of approximately $1.6 billion.

The boards of directors of both companies have unanimously approved the transaction, the two companies said in a joint statement.

The terms of the merger agreement stipulate that King's tender offer for all of the outstanding shares of Class A common stock of Alpharma, which was scheduled to expire at the closing hours of 21 November, would be extended to remain open through the closing hours of 19 December. The offer's amended terms would be filed with the Securities and Exchange Commission (SEC) before they are sent to Alpharma stockholders.

Alpharma's board has recommended that Alpharma stockholders tender their shares into King's amended offer.

A statement by King Pharmaceuticals said that around 73 per cent of all outstanding shares were validly tendered and not withdrawn pursuant to the tender offer.