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Teva expects the transaction to close in late 2008 and to become accretiveto GAAP earnings in the fourth quarter after closing. This purchase pricerepresents a premium of 32% to Barr's average daily closing price on the NewYork Stock Exchange for the 52-week period ending on July 16, 2008, and 42% tothe closing price on July 16, 2008.
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This acquisition will further enhance Teva's leadership position in theU.S. and will significantly strengthen its position in key European andCentral and Eastern European markets. On a pro forma basis, 2007 revenues ofthe combined company would have been approximately $11.9 billion. Thecombined company will have an unmatched global platform, operate directly inmore than 60 countries and employ approximately 37,000 people worldwide.
The companies' highly complementary product offerings and developmentpipelines will extend Teva's generic and proprietary offerings for customersglobally. By adding development resources and breadth to Teva's productportfolio and pipeline, particularly the Paragraph IV and first to fileopportunities, Teva will bring more products to market while increasing accessto affordable medicines. The transaction also bolsters Teva's specialtypharmaceutical platform through the addition of Barr's substantial women'shealth portfolio to Teva's respiratory franchise, further enhancing Teva'sbalanced business model.
Shlomo Yanai, President and Chief Executive Officer of Teva, said, "Theacquisition of Barr will elevate Teva's market leadership to a new level. Thecombination of our two companies provides an outstanding opportunitystrategically and economically: It will enhance our market share andleadership position in the U.S. and key global markets, further strengthen ourportfolio and pipeline, and provide upside to our strategic plan, by allowingus to exceed our 20/20 goals for 2012."
Mr. Yanai continued, "We have long admired Barr as a highly-focusedcompany with an excellent management team. This is a transaction in which twogreat, strong companies are joining forces to capture an even greater share ofthe growing opportunities in generics and deliver even more value to ourstakeholders."
Bruce Downey, Chairman and Chief Executive Officer of Barr, said, "Thistransaction will enable Teva to capitalize on Barr's portfolio of uniquegeneric and proprietary products, benefit from our capabilities in biologics,and expand its presence in important Central and Eastern European markets.This agreement has the full support of Barr's Board of Directors and seniormanagement, and will benefit the shareholders, customers and employees ofBarr."
Key benefits of the transaction include:
-- Exceptional Fit Supporting Teva's Long-Term Strategy: The transactioncombines two industry-leading companies, further enhancing Teva's lead in theU.S. and delivering increased scale and expanded geographic footprint in keyglobal growth markets.
-- Expanding the Breadth of the Product Portfolio and Pipeline: Teva andBarr's product offerings are highly complementary, extending Teva's productportfolio and pipeline into new and attractive product categories. Thecombined company will have over 5
