Perrigo to purchase Elan for US$8.6 billion

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Perrigo Company is a leading provider of healthcare products that are high in quality and affordable to buy. The company announced today that it has entered into a definitive agreement of acquisition to purchase Elan Corporation, an Irish biotechnology company. The purchase for Elan was in form of combined cash and stock valued around US$8.6 billion. This was based on the closing price of Perrigo shares last July 26, 2013. The purchase will create the new global healthcare firm a leading growth profile in the industry. This was to continue its goal of establishing a differentiated business.

Elan shareholders are to receive 0.07636 in shares and US$6.25 in cash. This valued Elan at US$16.50 during its closing price last Friday. After the closing of the deal, the shareholders of Perrigo are expected to own around 71% of the combined entity. On the other hand, the shareholders at Elan are expected to own around 29% of the new firm.

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