Horizon Pharma Proposes To Acquire Depomed In $3 Bln Stock Deal

(RTTNews) - Horizon Pharma Plc. (HZNP), a biopharmaceutical company, Tuesday announced a proposal to acquire all outstanding shares of Depomed, Inc. for $29.25 per share in an all-stock, tax-free exchange valued at about $3.0 billion.

Horizon's proposal represents a premium of 42 percent to the closing price of Depomed on July 6. The transaction, if consummated, would be immediately and substantially accretive to Horizon's adjusted earnings per share.

Timothy Walbert, chairman, president and CEO of Horizon, said, "Despite our repeated attempts beginning in March to engage Depomed's management and board of directors in friendly and confidential discussions, Depomed's management and board have refused to engage in discussions with us and rejected our proposal. We have elected to bring this proposal to the attention of Depomed's shareholders..."

According to Horizon, the transaction would generate significant revenue and operating synergies, tax savings. Projected full-year pro forma combined 2015 net sales and adjusted EBITDA would be in excess of $950 million and $350 million, respectively, based on Depomed's and Horizon's existing guidance.

The combined company will have 13 marketed medicines, nearly doubling Horizon's current portfolio, with more than 700 sales representatives in Primary Care, Orphan and Specialty business units.