UCB makes further stride into pharma with proposed buy of Schwarz Pharma

1 October 2006

Belgium group UCB, which said it would focus all its attention on pharmaceuticals and biotechnology rather than chemicals when it acquired the UK's Celltech in 2004, has announced another major move with the proposed purchase of Germany's Schwarz Pharma.

Under the terms of the deal, which has been accepted by the Schwarz family which controls around 60% of the firm's issued share capital, shareholders would receive 50 euros in cash and 0.8735 of one new ordinary share in UCB, valuing each Schwarz Pharma share at 91.10 euros and representing a 20.4% premium to the German company's closing price on September 22. The total cost of the acquisition will amount to 4.4 billion euros ($5.6 billion) and it is expected to be earnings accretive, post synergies, transaction costs and intangible amortization related to the purchase after the second year of ownership, says UCB.

Offer seen to value Schwarz fairly

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