Mylan To Buy Meda In $9.9 Bln Deal; Expects Significant Accretion To Earnings

(RTTNews) - Mylan N.V. (MYL) announced a recommended public offer to the shareholders of Meda Aktiebolag to tender all their shares in Meda to Mylan. The total offer consideration consists of a combination of cash and Mylan ordinary shares with a value of 165 Swedish kronor per Meda share. The total value of the offer for all Meda shares, including Meda net debt, is approximately 83.6 billion kronor or $9.9 billion. The total equity value of the offer for all Meda shares is approximately 60.3 billion Kronor or $7.2 billion.

The Board of Meda unanimously recommended that Meda shareholders accept the offer. Stena Sessan Rederi AB and Fidim, which own approximately 21 percent and 9 percent, respectively, of the outstanding shares and votes of Meda, have undertaken to accept the offer, subject to certain conditions.

Mylan expects the transaction to be immediately accretive to its earnings, with accretion increasing significantly after the first full year (2017) as synergies are realized. The company said the transaction creates an opportunity to achieve $0.35 to $0.40 accretion in 2017 and to accelerate achievement of Mylan's previously stated $6.00 in adjusted EPS target in 2017 versus 2018.

Mylan expects 2016 total revenues, with or without Meda, in the range of $10.5 billion to $11.5 billion, the midpoint of which represents an increase of 16% versus 2015. Adjusted EPS is expected to be in the range of $4.85 to $5.15, with or without Meda, the midpoint of which represents an increase of 16% versus 2015. Mylan has incorporated one quarter of Meda in its 2016 guidance.

Mylan CEO, Heather Bresch, said: "We have been very clear about our commitment to enter the OTC space and continue our expansion in emerging markets and, with this transaction, we will have an approximately $1 billion OTC business at close and gain entry into new growth markets such as China, Southeast Asia, Russia and the Middle East. Meda and Mylan also have an extremely complementary therapeutic presence and we see exciting opportunities across a number of strategically important categories, particularly allergy/respiratory."

Meda is a leading international specialty pharma company with a broad product portfolio sold in more than 150 countries and 2015 sales of approximately 19.65 billion Kronor. Approximately 60 percent of Meda's product sales are in the prescription area (Rx) and approximately 40 percent are in non-prescription (OTC) products.