Amneal and Impax to combine

Combination creates diversified pharmaceutical company with 5th largest generics business in the US.

The combined company, to be named Amneal Pharmaceuticals, will have a robust generics business that will rank as the 5th largest in the US by gross revenue and a growing, high-margin specialty franchise. The combined company is expected to have 2018 pro forma adjusted EBITDA of approximately $700 million to $750 million, which includes expected significant cost savings within the first full year of close. In addition to its broad existing commercial product portfolio, the combined organization will have a diverse and differentiated pipeline with more than 300 products either filed with the FDA or in active stages of development, a foundation for international expansion with select commercial presence in the UK and Germany, and cost-efficient global manufacturing and development capabilities in all dosage forms. The transaction is expected to enhance the combined organization's competitive position and allow for continued success in an evolving generics market.

"In the 15 years since our family founded Amneal, we have established the company as a leader in the US generic pharmaceuticals industry, and today marks an important milestone in these efforts," said Chirag Patel, Co-CEO and Co-Chairman of Amneal. "This transaction combines the complementary strengths of both Amneal and Impax to create an even stronger company with the diversification, capabilities and resources to deliver enhanced value for patients, new opportunities for our collective employees and increased growth and value creation for shareholders."

"We are excited to join with Impax to create one of the most dynamic companies in the pharmaceutical industry," said Chintu Patel, Co-Chief Executive Officer and Co-Chairman of Amneal. "This combination will help us achieve our long-term goals of providing greater access to safe and affordable medicine for people around the world, while also positioning us for continued success."

"This combination delivers on several key stated growth objectives for Impax," said Paul Bisaro, President and CEO of Impax. "By combining Amneal and Impax, we create a more diversified company with one of the industry's leading high-value generic product pipelines and a growing specialty business. Our combined portfolio will be supported by global, high-quality development and manufacturing capabilities."

"This transaction is financially compelling as we expect the combination to be accretive to Impax's standalone adjusted per share earnings in the first 12 months and generate double-digit growth in revenue and adjusted EPS over the 3 years following the close of the transaction. We expect to achieve annual cost synergies of approximately $200 million within three years," Bisaro continued. "The anticipated strong cash flows from the combined company allow for the repayment of debt and the ability to meaningfully invest in our business."

The new company will be led by an experienced team with a proven track record in driving strong organic growth and successfully integrating acquisitions. Amneal's Founders and Co-Chief Executive Officers, Chirag Patel and Chintu Patel, will serve as Co-Chairmen of the combined company's Board of Directors. Paul Bisaro, President and CEO of Impax, will serve as CEO of the combined company, and Bryan Reasons, Senior Vice President, Finance and CFO of Impax, will serve as CFO. This leadership team will be supported by the combined company's nearly 6,500 employees operating from strategically positioned locations around the globe.

Numerous Strategic Benefits to Drive Future Growth

Financially Compelling Transaction