Pfizer plans debt financing for $17 billion acquisition of Hospira

By Jennifer Chiou

New York, Feb. 5 – Pfizer Inc. announced that it entered into a definitive merger agreement under which it will acquire Hospira, Inc. for $90 a share in cash for a total enterprise value of $17 billion. Pfizer expects to finance the transaction through a combination of existing cash and new debt.

According to a news release, about two-thirds of the value will be financed from cash and one-third from debt.

Pfizer said it anticipates the transaction to deliver $800 million in annual cost savings by 2018.

The transaction is subject to customary closing conditions, including regulatory approvals in several jurisdictions and approval of Hospira’s shareholders, and is expected to close in the second half of 2015.

“The proposed acquisition of Hospira demonstrates our commitment to prudently deploy capital to create shareholder value and deliver incremental revenue and EPS growth in the near-term,” Pfizer chairman and chief executive officer Ian Read said in the release.

“In addition, Hospira’s business aligns well with our new commercial structure and is an excellent strategic fit for our global established pharmaceutical business, which will benefit from a significantly enhanced product portfolio in growing markets.”

Pfizer is a New York-based global biopharmaceutical company. Hospira, a specialty pharmaceutical and medical delivery company, is based in Lake Forest, Ill.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.