Horizon Pharma PLC (NASDAQ:HZNP) stock was up following news that Raptor Pharmaceutical Corp. (NASDAQ:RPTP) will be bought by it for $800 million.
Horizon Pharma is valuing Raptor at $9 per share in the deal. It will be using a combination of cash on hand and external debt to acquire RPTP. The external debt will make up $675 million of the $800 million price. The company also had $424.5 million in cash and cash equivalents as of June 30, 2016.
The acquisition of Raptor will be beneficial to both it and Horizon Pharma. It will allow HZNP to expand its business into Europe and other international markets. It also gives the company global rights to Procysbi and Quinsair. The company is expecting the deal to be accretive to its adjusted EBITDA in 2017.
Horizon Pharma is getting financial advise from MTS Health Partners L.P. Citigroup Global Markets Inc., BofA Merrill Lynch, J.P. Morgan, Jefferies LLC and Cowen and Company, LLC. It’s legal advisors for the deal are Cooley LLP and McCann FitzGerald.
Raptor’s financial advisors are Centerview Partners LLC and Leerink Partners LLC. Latham & Watkins LLP will be providing legal advice for the transaction.
Horizon Pharma and Raptor’s Board of Directors have both unanimously approved the deal. Now if just needs approval from regulators and to meet other customary closing conditions. The deal is expected to close during the fourth quarter of 2016, if it gets approval.
Horizon Pharma held a conference call today with investors to discuss the deal with Raptor. It can be found at this link.
HZNP stock was up 7% and RPTP stock was up 20% as of Noon Monday.
