Eurand agrees to around $583 million acquisition by Axcan

Dutch specialty pharmaceutical company, Eurand NV (Nasdaq: EURX) has agreed to be acquired by privately-held US firm Axcan Holdings, which is focused on the treatment of gastrointestinal disorders, for $12.00 per share in cash, a premium of 9.4% on its Tuesday closing price. The fully diluted equity value of the transaction is approximately $583 million. Eurand's shares rose 8.3% to $11.87 in morning trading on Wednesday.

Under the terms of the accord, which has been unanimously backed by Eurand’s independent directors, it is anticipated that a wholly-owned subsidiary of Axcan will shortly commence a tender offer for all of the outstanding shares of Eurand. The transaction is expected to close in the second quarter of 2011.

Angelo Malahias, chairman of Eurand's Special Committee consisting of the independent directors, said: "After an extended auction process, and in conjunction with its independent financial and legal advisors, the Board of Directors has concluded that this agreement is in the best interests of our shareholders and other stakeholders."