Endo attempting to outbid Valeant for Salix Pharma

12 March 2015

Salix Pharmaceuticals (Nasdaq: SLXP) late yesterday confirmed that it has received an unsolicited proposal from Ireland-headquartered Endo International (Nasdaq: ENDP) to acquire all of the outstanding shares of common stock of the company for a combination of 1.4607 shares of Endo common stock and $45.00 in cash per Salix share.

The transaction is valued at $175.00 per Salix share ($11.2 billion in total), or valuing Salix at around $15.7 billion including $4.5 billion of net debt, compared with Canada’s acquisitive drugmaker Valeant Pharmaceuticals International’s (TSX: VRX) recent bid for the company of $158 per share in cash, meaning an enterprise value (including debt) of $14.5 billion.

Under the terms of the offer, Endo will be responsible for a $356-million breakup fee that would be due to Valeant if Salix does not consummate the agreement as well as around $60 million in associated fees.

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