Pfizer To Buy Hospira For $90/Shr For Total Enterprise Value Of $17 Bln

(RTTNews) - Pharmaceutical giant Pfizer, Inc. (PFE) has agreed to acquire Pharmaceutical and medication delivery company Hospira, Inc. (HSP) for $90 a share in cash for a total enterprise value of around $17 billion. The boards of both the companies have unanimously approved the merger, which is likely to be immediately accretive upon closing, accretive by $0.10 - $0.12 a share for the first full year following the close of the transaction with additional accretion expected thereafter.

The company said this strategically complementary combination would add a growing revenue stream and a platform for growth for Pfizer's GEP division. The expanded portfolio of sterile injectable pharmaceuticals, composed of Hospira's broad generic sterile injectables product line, including acute care and oncology injectables, with a number of differentiated presentations, as well as its biosimilars portfolio, combined with GEP's branded sterile injectables, including anti-infectives, anti-inflammatories and cytotoxics, will create a leading global sterile injectables business.

Pfizer plans to finance the transaction through a combination of existing cash and new debt, with about two-thirds of the value financed from cash and one-third from debt. Further, Pfizer expects the transaction to deliver $800 million in annual cost savings by 2018. The transaction may close in the second half of 2015.