AMAG Pharma To Buy Cord Blood Registry For $700 Mln - Quick Facts

(RTTNews) - AMAG Pharmaceuticals Inc. (AMAG) announced that it has entered into a definitive agreement to acquire Cord Blood Registry or CBR, the world's largest stem cell collection and storage company serving pregnant women and their families, for $700 million.

AMAG stated that the acquisition of CBR would expand AMAG's suite of maternal health offerings and add a high-margin business with complementary commercial capabilities and attractive future growth opportunities to the AMAG portfolio.

The transaction is expected to further diversify AMAG's revenue base, be immediately accretive to adjusted EBITDA and earnings, and result in expense synergies of approximately $15 million annually.

The transaction has been unanimously approved by AMAG's and CBR's boards of directors. Closing of the transaction is subject to customary conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976. It is anticipated that the transaction will close in the third quarter of 2015.

Following the close of the transaction, Crouse will continue to lead the CBR business, and AMAG intends to name other CBR executives who will be joining AMAG in the near future.

AMAG noted that it has secured $800 million in committed debt financing for the transaction from Jefferies Finance LLC and Barclays Capital which, in addition to AMAG's existing balance sheet cash, is sufficient to finance the transaction, repay AMAG's senior secured term loan and pay fees and expenses related to the transaction.