Concordia Agrees To Buy Amdipharm Mercury In $3.5 Billion Deal

Concordia Healthcare Corp. said Tuesday it has agreed to buy Amdipharm Mercury Ltd. (Amco) for about $3.5 billion in cash and stock. The seller is European private-equity firm Cinven, plus funds managed by it and certain other persons, Concordia said in a statement. The deal "will uniquely position the combined company as a leading, international pharmaceutical company with extensive geographic reach, a diversified and attractive product portfolio, and an asset-light business model that we expect will allow us to focus investments and resources on further growing our business," Concordia Chief Executive Mark Thompson said in a statement. Amco has sales in more than 100 countries and is a leader in many of its products. The combined company is expected to have pro forma revenue of $870 million to $920 million for 2015 and adjusted EBITDA of $510 million to $540 million. Concordia is expecting it to boost adjusted EPS by 35% in its first full year. Concordia shares were not yet active in premarket trade, but are up 110% in the year so far, while the S&P 500 has lost 6.7%.