Pfizer, a multinational pharmaceutical corporation headquartered in New York City, will acquire Hospira, a Lake Forest, Ill.-based global pharmaceutical and medical device company, for $90 a share in cash for a total enterprise value of about $17 billion.
Pfizer anticipates funding the transaction through a combination of existing cash and new debt and expects the transaction to result in $800 million in annual cost savings by 2018, according to a news release.
In a statement, John Young, group president of Pfizer Global Established Pharmaceutical business, said adding Hospira "has the potential to fundamentally improve the growth trajectory of the Global Established Pharmaceutical business, vault it into a leadership position in the large and growing off-patent sterile injectables marketplace by combining the specialized talent and capabilities of both companies, including enhanced manufacturing, and advance its goal to be among the world's most preeminent biosimilars providers."
Hospira CEO F. Michael Ball added, "The Pfizer-Hospira combination is an excellent strategic fit, presenting a unique opportunity to leverage the complementary strengths of our robust portfolios and rich pipelines."
The definitive merger agreement is expected to close in the second half of this year.
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