FRANKFURT (AFP) — The German pharmaceutical company Fresenius said on Monday it would acquire APP, a US specialist in intravenously-administered generic drugs for at least 3.7 billion dollars (2.4 billion euros).
Fresenius would pay 23 dollars per share in cash, and plans to finalise the deal by early 2009 at the latest, pending approval by competition authorities, it said in a statement.
If APP core earnings from 2008 to 2010 surpass a set target, shareholders would get an additional six dollars per share.
"This acquisition is an important step in the strategy of Fresenius Kabi (a division which is specialised in infusion therapy and clinical nutrition): The group thus enters the American pharmaceutical market and will play a leading role in the global market for intravenous generics," Fresenius added.
APP, which is listed on the Nasdaq exchange, posted sales of 647 million dollars in 2007, and gross operating profit of 253 million, the German group said.
With a staff of 1,400, APP has a product line of more than 100 treatments used in US and Canadian hospitals for anesthesia and treatment of cancer and other infections.
Fresenius expects to finance the purchase via loans and its own capital, and expects the transaction to return a profit within two years.
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