Generic drug giant Mylan offered to acquire healthcare supplier Perrigo for $28.9 billion Wednesday in the latest proposed mega-merger in the pharmaceutical sector. Shares of both companies soared after England-based Mylan announced the $205 per share, cash-and-stock bid for Perrigo.
The offer represented a premium of 25 percent over Perrigo's closing price Thursday of $163.73. (US markets were closed Friday.)
The deal would combine companies with sales totalling $15.3 billion in 2014, with complementary businesses in specialty health brands, generics, over-the-counter and nutritional products.
"Our proposal is the natural culmination of our prior discussions and reflects our shared vision for the industry," said Mylan chief executive Robert Coury in an April 6 letter to Perrigo chief executive Joseph Papa.
"This is the right time for our two companies to move forward together, and Mylan and our board are firmly committed to making this combination a reality."
The deal comes on the heels of a series of large acquisitions in the global pharmaceutical industry, including transactions involving both Perrigo and Mylan.
Perrigo relocated to Dublin in 2013 from the US following its acquisition Irish pharma company Elan for about $8.6 billion. Mylan shifted its headquarters to England earlier this year from the US following a deal to buy Abbott's non-US speciality and branded generic drug business for $5.3 billion.
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