Exciting day: Yisrael Makov
Photo: Chen Mika
Teva closes largest deal in Israel's history
Israeli pharmaceutical Teva announces purchase of American company IVAX for USD 7.2 billion
Pharmaceutical giant Teva completed a deal Monday to buyout American competitor IVAX for USD 7.2 billion in cash and stocks.
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Under terms of the deal, the American company's regular stocks will be exchanged for USD 26 each or .8471 percent the value of Teva's stock with the understanding that the division will be 50-50, between cash and stock.
Teva president and CEO Yisrael Makov praised the deal, calling it an "exciting day" and a "milestone" in the history of the company.
"Teva. IVAX, like Teva, is a pioneer of growth strategies and globalization, he said."
Merger strengthens standing
“The merger of the two companies will strengthen our standing in generic industrial production around the world,” said Makov.
"Bringing together our businesses will enable us to consolidate the generic industry by expanding our product line, which will accumulate larger products and obtain a higher profile in the medical market,” he said.
With the completion of the deal, IVAX shareowners will own 15 percent of the Teva corporation.
The transaction, which will be carried out in cash, will be funded by from Teva profits and credit lines that were created especially for the deal. The directors of both companies unanimously approved the purchase, which will see the creation of the largest pharmecutical company in the world, and is the largest deal done in Israeli business history.
On the basis of current Teva and IVAX activities, Teva’s sales are expected to rise to 7 billion USD. The new company will conduct business in 50 countries and employ 25,000 people.
IVAX’s geographic strength lies in Latin America, as well as eastern and central Europe. The merger with Teva will grant it access to North America and Europe.
