Actavis Closes Acquisition Of Allergan - Quick Facts

(RTTNews) - Actavis plc (ACT) announced that it has completed the acquisition of Allergan, Inc. (AGN) in a cash and equity transaction valued at approximately $70.5 billion.

The combination creates one of the world's top 10 pharmaceutical companies by sales revenue, with combined annual pro forma revenues of more than $23 billion anticipated in 2015.

Actavis continues to expect the transaction to generate double-digit accretion to non-GAAP earnings within the first 12 months, including approximately $1.8 billion in operating and financial synergies to be realized within one year following the close. These synergies exclude any additional revenue or manufacturing synergies, and are in addition to the $475 million of annual savings previously announced by Allergan in connection with Project Endurance. Actavis further expects to generate strong operating cash flow in excess of $8 billion in 2016, which would enable the Company to rapidly de-lever the balance sheet.

The combined company will provide a strong commitment to R&D, with an exceptional level of investment of approximately $1.7 billion expected in 2015, focused on the strategic development of innovative and durable value-enhancing products within brands, generics, biologics and OTC portfolios.

On November 17, Actavis said it agreed to acquire Allergan in a cash and stock deal valued at about $219 per share, or $66 billion.