APP Pharmaceuticals, a Schaumburg, Ill.-based manufacturer of injectable pharmaceutical products for hospitals, has reached an agreement to be bought out by Fresenius, a Bad Homburg, Germany-based healthcare products and services company, for $3.7 billion in cash, according to a news release.
Terms of the deal also call for Fresenius to assume all of APPs outstanding debt and pay an additional $6 per share contingent value right if APP achieves certain earnings targets between 2008 and 2010. The debt acquisition and additional cash consideration could bring the deal to a total value of $5.6 billion. APP will join the companys Fresenius Kabi division, which provides infusion therapy products in Europe, Latin America and the Asia-Pacific region.
The acquisition, which is still subject to regulatory and APP stockholder approvals, would allow Fresenius to enter the North American intravenous drug market and also allow for rapid globalization of APPs portfolio, said APP Founder and Chairman Patrick Soon-Shiong in a written statement. -- by Shawn Rhea
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