JPMorgan Chase Funds $440MM Akorn Acquisition
Akorn announced it has entered into a definitive agreement to acquire VPI Holdings, the parent company of VersaPharm, for $440 million in cash.
Fully committed financing for the transaction has been provided by JPMorgan Chase Bank. J.P. Morgan Securities is acting as exclusive financial advisor and Kirkland & Ellis is acting as legal advisor to Akorn in connection with this transaction. BMO Capital Markets is acting as exclusive financial advisor and Kelley Drye & Warren is acting as legal advisor to VersaPharm and Tailwind Capital in connection with this transaction.
This acquisition is expected to add $90 to $100 million in annual revenues and $0.10 to $0.12 in earnings per share, excluding new pipeline launches, deal amortization and acquisition-related expenses. Akorn intends to fund the transaction through approximately $445 million in term loan borrowings.
VersaPharm, a privately-held developer and marketer of multi-source prescription pharmaceuticals, has a focus in the niche therapeutic categories of dermatology, tuberculosis and hemophilia. VersaPharm has built a robust pipeline of over 20 products, including 11 ANDAs filed with the FDA, with an addressable IMS market value of over $700 million.
Raj Rai, Akorn’s CEO, commented, “This acquisition is a highly strategic fit with the recently acquired Hi-Tech platform as well as Akorn’s focus on niche dosage forms.”