Amneal Pharma, Impax Announce Business Combination - Quick Facts

(RTTNews) - Amneal Pharmaceuticals LLC and Impax Laboratories, Inc. (IPXL) announced a definitive business combination in an all-stock transaction. As a result of the transaction, Amneal Holdings members will own approximately 75% and Impax shareholders will own approximately 25% of the new company's pro forma shares on an as converted basis. The combined company will have a generics portfolio with approximately 165 differentiated product families marketed in all dosage forms.

The combined company will be named Amneal Pharmaceuticals, Inc. Amneal's Founders and Co-CEOs, Chirag Patel and Chintu Patel, will serve as Co-Chairmen of the combined company's Board. 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.

On a pro forma basis, the combined company is expected to generate annual double-digit growth in net revenue, adjusted EBITDA and adjusted EPS over the three years following the close of the deal. The combination is expected to be accretive to Impax's adjusted EPS in the first 12 months after close. The combined company is expected to have 2017 pro forma net revenue ranging from $1.75 billion to $1.85 billion and pro forma adjusted EBITDA of approximately $600 million to $650 million in 2017 and $700 million to $750 million in 2018. The significant cash flow generated will enable the new company to pay down debt. The transaction is expected to generate $200 million in annual cost savings within three years following the close of the transaction.

Impax also confirmed the company's 2017 financial guidance, previously announced on August 9, 2017. Full year 2017 adjusted net income per share is expected to be in the range of $0.55 to $0.70.