Endo International said it would buy Par Pharmaceutical Holdings from private equity firm TPG Capital for about USD 8 billion, including debt.
"This is a transaction that's transformative for Endo in general, but specifically in generics, this will position us as a top-five generics player in the US," Endo International CEO Rajiv De Silva said Monday on CNBC's "Squawk Box."
Par brings a diverse portfolio of existing products to Endo, as well as a product pipeline that is "arguably one of the best in the industry," the chief executive said. The deal will grow to "double digits" beginning in 2016, he added.
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Dublin-based Endo's shares rose more than 1 percent in premarket trading Monday. Endo said its offer consists of about 18 million shares and USD 6.5 billion in cash.
Par Pharmaceutical was acquired by TPG Capital for USD 1.9 billion in 2012 following pressure from activist firm Relational Investors LLC to sell itself.
The company, which filed with US regulators in March for an initial public offering of common stock, had debt of USD 2.35 billion as of March 31.
Asked about the size of the deal relative to the price TPG paid for Par about three years ago, De Silva said CEO Paul Campanelli had transformed Par's business since 2012.
"TPG had the benefit of having one of the best management teams in the generics industry working for them at Par," he said. "The business at Par today is a fundamentally different one from the one TPG purchased in 2012."
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Par operates through its generics division, Par Pharmaceutical, and its proprietary products division, Strativa Pharmaceuticals.
Endo said it had secured financing from Deutsche Bank and Barclays to help fund the deal. Barclays, Deutsche Bank and Houlihan Lokey are Endo's financial advisers while JPMorgan is financial adviser to Par.
Skadden, Arps, Slate, Meagher & Flom LLP is Endo's legal adviser and Ropes & Gray LLP is Par's legal adviser.
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