Edition:
United Kingdom

Abbvie To Acquire Allergan For $63 Bln


Tuesday, 25 Jun 2019 

June 25 (Reuters) - AbbVie Inc ::ABBVIE TO ACQUIRE ALLERGAN IN TRANSFORMATIVE MOVE FOR BOTH COMPANIES.TRANSACTION EQUITY VALUE OF APPROXIMATELY $63 BILLION.ALLERGAN SHAREHOLDERS WILL RECEIVE 0.8660 ABBVIE SHARES AND $120.30 IN CASH FOR EACH ALLERGAN SHARE, FOR A TOTAL CONSIDERATION OF $188.24 PER ALLERGAN SHARE.UPON COMPLETION OF TRANSACTION, ABBVIE WILL CONTINUE TO BE INCORPORATED IN DELAWARE AS ABBVIE INC.DEAL IS EXPECTED TO BE 10% ACCRETIVE TO ADJUSTED EARNINGS PER SHARE OVER FIRST FULL YEAR FOLLOWING CLOSE OF TRANSACTION.ABBVIE WILL CONTINUE TO BE LED BY RICHARD A. GONZALEZ AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER.EXPECTED TO GENERATE SIGNIFICANT ANNUAL OPERATING CASH FLOW, WHICH WILL SUPPORT A DEBT REDUCTION TARGET OF $15 TO $18 BILLION BEFORE END OF 2021.ABBVIE ANTICIPATES THAT ACQUISITION WILL PROVIDE ANNUAL PRE-TAX SYNERGIES AND OTHER COST REDUCTIONS OF AT LEAST $2 BILLION IN YEAR THREE.ABBVIE WILL CONTINUE TO BE INCORPORATED IN DELAWARE AS ABBVIE INC. AND HAVE ITS PRINCIPAL EXECUTIVE OFFICES IN NORTH CHICAGO, ILL.2 MEMBERS OF ALLERGAN'S BOARD, INCLUDING CHAIRMAN AND CHIEF EXECUTIVE OFFICER, BRENT SAUNDERS, WILL JOIN ABBVIE'S BOARD UPON CLOSE OF DEAL.COMBINED CO WILL PRODUCE ROBUST CASH FLOW TO SUPPORT CONTINUED DIVIDEND GROWTH, FURTHER INVESTMENT IN PIPELINE AND REDUCTION OF DEBT LEVELS.AFTER DEAL CLOSE, CO'S SHAREHOLDERS TO OWN ABOUT 83% OF CO AND ALLERGAN SHAREHOLDERS WILL OWN ABOUT 17% OF ABBVIE.