Sweden's Meda buys US specialty drug firm Alaven for $350 million

Swedish drugmaker Meda AB (MEDAA:SS) has signed an agreement to acquire the privately-held US specialty firm Alaven Pharmaceuticals, in a move that will significantly enhance its marketing capabilities in the USA and therapeutic focus to include both gastroenterology and women's health, areas in which Meda already operates outside America.

Under the terms of the deal, Meda will pay $350 million on a cash and debt free basis. Net debt is estimated to $63 million. The acquisition of Alaven, which is based in Marietta, Georgia, is expected to be accretive to Meda's earnings per share already during 2011. The transaction is fully financed by Meda's existing credit facilities. Closing of the transaction, which is subject to standard closing requirements and antitrust clearance from the US Federal Trade Commission, is expected to be completed by early October.

US firm also has OTC business