GE Capital HFS Provides Financing to Support Concordia Buy
Concordia Healthcare announced it has completed the previously announced acquisition of Donnatal, an adjunctive therapy in the treatment of irritable bowel syndrome and acute enterocolitis, from a privately held specialty pharmaceutical company carrying on business as Revive Pharmaceuticals.
The company said it acquired Donnatal for $200 million in cash and an aggregate of 4,605,833 common shares of Concordia, representing approximately 16.17% of the company’s outstanding common shares after giving effect to the acquisition. At the closing of the acquisition, Paul Manning, founder of PBM Capital Group and Revive Pharmaceuticals, was appointed to the board of directors of the company.
Management paid for the cash component of the acquisition through a combination of available cash and debt financing. Accordingly, the company entered into a secured credit facility having a principal amount of up to $195 million, consisting of a $170 million term loan and a $25 million operating line with GE Capital, Healthcare Financial Services and a syndicate of lenders. The Credit Facility is secured by the assets of the company and the assets of its material subsidiaries.
Torreya Partners and GMP Securities acted as financial advisors to Concordia . Lazard Middle Market acted as financial advisor to Revive Pharmaceuticals.
Toronto-based Concordia is a diverse healthcare company focused on legacy pharmaceutical products, orphan drugs, and medical devices for the diabetic population.