Actavis to buy Allergan for $66 billion

Actavis announced on Monday that it will acquire Allergan for $66 billion, or $219 per share in cash and Actavis shares.

“Today’s transaction provides Allergan stockholders with substantial and immediate value, as well as the opportunity to participate in the significant upside potential of the combined company,” David E. I. Pyott, chairman and CEO of Allergan, said in a release.

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“This combination will greatly enhance our U.S. and international commercial opportunities,” said Paul Bisaro, executive chairman of Actavis.

Getty Images Actavis pharmaceuticals.

Getty Images
Actavis pharmaceuticals.

The combined company will be led by Brent Saunders, CEO and president of Actavis, and Paul Bisaro will remain executive chairman of the Board, the release said.

The deal beats the unsolicited bid last spring of above $50 billion from Valeant, which teamed with Bill Ackman’s hedge fund Pershing Square Capital Management.

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Valeant Chairman and CEO J. Michael Pearson said in a statement that his firm “cannot justify to its own shareholders paying a price of $219 or more per share for Allergan.”

A representative from Pershing Square did not have an immediate comment.