Sun Pharmaceutical Industries, together with its subsidiaries, has signed definitive agreements to acquire multinational generic manufacturer Taro Pharmaceutical Industries (TAROF, Pink Sheets), in an all-cash deal worth $454 million.According to an official release issued by the company to the BSE today, it intends to fund the acquisition with internal accruals and proceeds from its earlier $350 million FCCB. This deal values Taro's equity at $230 million, or $7.75 per share which is at a 27% premium to its May 18, 2007 closing price of $6.10.Sun Pharma will also refinance $224 million in net debt of Taro. In addition, to provide immediate liquidity for Taro, the company will provide interim financing to the extent of $45 million, the release said.Dilip Shanghvi, CMD of Sun Pharma, said: "We look forward to working with Taro and its employees going forward. This is a good opportunity for Sun and Taro to work together to create increasing value and add a complimentary multinational organization to Sun's business. We intend to build on Taro's expertise in dermatology and pediatrics, alongwith specialty and generic pharmaceuticals, and over-the-counter products. With the addition of 170 talented scientists to our team we look forward to increasing number of product filings of higher complexity."Taro has established subsidiaries, manufacturing and products across USA, Israel, Canada. North America represents more than 90% of its sales. It has a strong franchise in dermatology and topical products, in addition to product baskets in cardiovascular, neuropsychiatric and anti-inflammatory therapeutic categories, the release added.
