Endo Health Solutions' Qualitest subsidiary has reached a definitive agreement to acquire privately held Boca Pharmacal, a specialty generics company, for $225 million in cash. The transaction is expected to enhance the growth platform and pipeline for Endo's Qualitest business and is consistent with Endo's strategic transformation into a leading specialty healthcare company.
Boca Pharmacal is a specialty generics company that focuses on niche areas, commercializing and developing products in categories that include: controlled substances, semisolids, and solutions. Boca Pharmacal's commercial footprint and R&D pipeline are a strong complement to Qualitest. The transaction is expected to be immediately accretive to Endo's 2013 adjusted diluted earnings per share. On a stand-alone basis, Boca Pharmacal is expected to generate EBITDA of approximately $50 million in full year 2013. The deal is expected to close before the end of 2013, subject to standard regulatory requirements. The transaction will be financed with Endo's current cash on hand.
"The acquisition of Boca Pharmacal is the first of several transactions we plan to execute as we transform Endo into a more focused specialty healthcare company with a lean operating model, able to deliver consistent earnings and revenue growth for our shareholders," said Rajiv De Silva, president and CEO of Endo. "The acquisition is aligned with our current generics footprint and will meaningfully accelerate the growth of Qualitest in 2014. I believe that the revenue and earnings contribution of this transaction, combined with the unique commercial portfolio and strong pipeline of ANDAs, make this an ideal fit."
Endo Health Solutions Inc. (Endo) is a US-based specialty healthcare company with four distinct business segments that are focused on branded and generic pharmaceuticals, devices and services, each providing quality products to our customers while improving the lives of patients.
Since its beginnings in 1998, Boca Pharmacal's mission has been to offer niche items that were overlooked by some of the larger generic companies as affordable alternatives to brand-named products.