Fresenius Kabi to acquire Akorn for $4.3B

LAKE ZURICH, Ill. and LAKE FOREST, Ill. — Fresenius Kabi will acquire Akorn, manufacturer and marketer of prescription and over-the-counter pharmaceutical products, for approximately $4.3 billion, or $34 a share, plus the assumption of approximately $450 million of debt. The transaction is expected to close by early 2018 and to be accretive in 2018 to Fresenius Group net income and EPS, excluding integration costs.

The agreement and transaction have been approved by the boards of both companies and will be recommended by Akorn’s board to its shareholders. Akorn’s largest shareholder has committed to supporting the transaction. The transaction is subject to approval by Akorn shareholders and other customary closing conditions, including regulatory review under the Hart-Scott-Rodino Antitrust Improvements Act.

“Joining our two companies and product portfolios will strengthen and diversify both businesses,” said John Ducker, president and CEO of Fresenius Kabi USA. “Akorn brings to Fresenius Kabi specialized expertise in development, manufacturing and marketing of alternate dosage forms, as well as access to new customer segments like retail, ophthalmology and veterinary practices. Its pipeline is also impressive, with approximately 85 ANDAs filed and pending with the FDA and dozens more in development.”

Fresenius Kabi specializes in sterile injectable medicines. Akorn produces a diverse portfolio comprising sterile ophthalmics, topical creams, ointments and gels, oral liquids, otic solutions (for the ear), nasal sprays and respiratory drugs in addition to sterile injectables, which made up just 35% of Akorn sales last year.

“Fresenius Kabi is an excellent fit for Akorn, strategically and culturally,” said Raj Rai, Akorn’s CEO. “Fresenius brings to Akorn the strength and resources of a global leader with an experienced U.S. team and an outstanding record of growth and award-winning service in the United States. We look forward to working with Fresenius Kabi on this next phase of our growth. When the transaction closes, we will strive to ensure a smooth transition for our employees and customers.”

The U.S. headquarters for Akorn and Fresenius Kabi are both in northern Illinois, located in close proximity. Akorn employs more than 2,000 people worldwide. Fresenius Kabi employs more than 30,000 worldwide.