Actavis-Allergan Merger Deal

B. Rajesh Kumar
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B. Rajesh Kumar: Institute of Management Technology

Chapter 19 in Wealth Creation in the World’s Largest Mergers and Acquisitions, 2019, pp 183-189 from Springer

Abstract: Abstract In the year 2000, the Actavis acquired Schein Pharmaceutical Inc. This acquisition doubled the size of the company. In 2006, the company acquired Andrx Corporation, the Florida-based pharmaceutical company. This acquisition made Actavis the third largest specialty pharma company in the world in terms of total prescriptions. Through the Arrow Group acquisition in the year 2009, Actavis obtained international presence in more than 20 international markets. During November 2012, Watson acquired the Switzerland-based global generics Actavis Group for €4.25 billion which created the world’s third largest generics company. During March 2015, Actavis completed the acquisition of Allergan Inc. in a cash and share transaction valued at $70.5 billion. The acquisition created one of the world’s largest pharmaceutical companies by sales revenues. Actavis adopted Allergan plc as its new global name and started trading under a new symbol – AGN in the New York Stock Exchange. The company name change followed the acquisition of Allergan in the year 2015.The merger created one of the top ten largest pharmaceutical companies in the world. Actavis acquired Allergan for a combination of $129.22 in cash and 0.3683 Actavis shares for each share of Allergan common stock. The transaction was valued at $219 per Allergan share. The Actavis shareholders owned 72%, and Allergan shareholders held 28% of the issued and outstanding Actavis ordinary shares. The acquisition created one of the fastest and dynamic pharmaceutical companies in global healthcare. The combined company achieved dominant position in segments like eye care, neurosciences/CNS, medical aesthetics, dermatology, gastroenterology, and urology. The cumulative returns for the 228-day period (−19 to +231 days) surrounding the merger announcement for Actavis was 23%. The merger announcement had a positive impact for wealth creation for Allergan stock.

Keywords: Actavis; Merger Announcement; Large Generation Companies; Media Aesthetics; Combined Pharmaceutical Company (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1007/978-3-030-02363-8_19

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