Endo to acquire Paladin Labs in $1.6 billion deal

6 November 2013

Shares of Endo Health Solutions (Nasdaq: ENDP) leapt 29% to $56.22 by close of trading on November 5, after the company revealed that it has entered into a definitive agreement to acquire Canadian specialty pharma group Paladin Labs (TSX: PLB). Paladin shares rocketed 49.3% to C$95.43.

The deal is a stock and cash transaction valued at around $1.6 billion of which about 98% will be paid in shares of stock as described below. The acquisition accelerates Endo's strategic transformation to a leading global specialty health care company and creates a platform for future growth in North America and internationally.

Pursuant to the acquisition, each of Endo and Paladin Labs will be acquired by a newly-formed Irish holding company (New Endo). At C$77.00 ($74) per Paladin Labs share, the transaction represents a 20% premium to Paladin’s share price of $63.91 as of November 4, 2013, and is expected to be immediately accretive to Endo's 2014 adjusted earnings per share.

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