This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

News
14 Oct 2014

Impax to Acquire Tower Holdings, Inc. and Lineage Therapeutics Inc.

Impax Laboratories has announced the execution of a definitive agreement under which Impax will acquire Tower Holdings, including operating subsidiaries CorePharma and Amedra Pharmaceuticals and Lineage Therapeutics (together, the "Companies") for $700 million in cash, subject to certain customary purchase price adjustments.

 

The privately-held Companies being acquired specialise in the development, manufacture and commercialisation of complex generic and branded pharmaceutical products. The transaction will provide Impax with a highly-profitable and growing commercialized portfolio of products that are expected to generate full year 2014 revenues of approximately $215 million to $225 million and earnings before interest, taxes, depreciation and amortisation (EBITDA) of approximately $80 million to $85 million on a standalone basis. Assuming a close within the next 6 months, the transaction is expected to be approximately $0.90 accretive to Impax's 2015 earnings per diluted share. 

 

"This transaction is an important step forward in executing our plan to drive growth and create value through strategic acquisitions that enhance our existing strategies," said Fred Wilkinson, President and CEO of Impax. "The Companies will add a growing, highly profitable, commercial portfolio of generics as well as a lead product in a new brand franchise, which will enhance our brand division and enable us to utilize our brand commercial infrastructure more efficiently. The acquisition also adds a branded and generic pipeline that includes a number of near-term opportunities. In addition, Impax will gain an established campus in New Jersey focused on R&D, manufacturing, packaging and supply chain management. Further, this accretive transaction will move Impax to a more efficient capital structure, while also preserving our ability to pursue additional external strategic growth opportunities."

 

Christopher Worrell, CEO of Tower Holdings, Amedra and Lineage, said: "We are pleased with the progress we have made across our Companies with an emphasis on the successful implementation of a Quality Improvement Program, which resulted in recent product approvals from FDA. Both Impax and the Companies have a proven record of developing high value specialty products, and we look forward to being a critical contributor to the future growth strategy and value creation for Impax."

 

"We look forward to working closely with the talented individuals from the Companies and leveraging the opportunities created by our combined organization," Wilkinson continued. "We believe that this strategic acquisition will further strengthen our dual business model in an effort to create value for our shareholders."

Related News