By Lisa Kerner
Charlotte, N.C., March 31 - Teva Pharmaceutical Industries Ltd. agreed to acquire Bentley Pharmaceuticals, Inc.'s generic pharmaceutical business following the previously announced spinoff of Bentley's drug delivery business, CPEX Pharmaceuticals, Inc., to its shareholders.
Under the companies' definitive merger agreement, Bentley shareholders will receive approximately $15.02 cash per share, or a total of some $360 million, as well shares of CPEX, according to a joint news release.
"This is an important acquisition for Teva, as the combination of Teva Spain and Bentley will provide us with a platform to capture a leading position in the fast-growing Spanish generic pharmaceutical market," Teva president and chief executive officer Shlomo Yanai said in the release.
"Spain was identified as one of our target markets in the strategic review we conducted last year," Yanai added.
Teva said it established a presence in Spain in 2004 with Teva Genericos Espanola, SL, the fourth-largest generic company in Spain in the hospital market.
Following the acquisition, Teva, based in Petach Tikva, Israel, will have more than 170 product offerings in the Spanish market, up from its current 60, and will have over 45 products pending generic product registrations, the release stated.
The transaction is slated to close in the third quarter. Teva said it will fund the deal and Teva shareholder approval is not required.
Bentley chairman and CEO James Murphy and vice chairman Michael McGovern, who currently hold a total of 13.8% of the company's outstanding shares, agreed to vote in favor of the transaction.
Bentley is a specialty pharmaceutical company located in Exeter, N.H. The company manufactures and markets active pharmaceutical ingredients through its subsidiary, Bentley API.
| Acquirer: | Teva Pharmaceutical Industries Ltd.
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| Target: | Bentley Pharmaceuticals, Inc.
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| Announcement date: | March 31
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| Transaction total: | $360 million
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| Price per share: | $15.02 cash per share, plus shares of CPEX Pharmaceuticals, Inc.
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| Expected closing: | Third quarter of 2008
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| Stock price of target: | NYSE: BNT: $13.74 on March 28
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