(Adds detail, background, share reactions)
Nov 18 (Reuters) - Swedish pharmaceutical group Recipharm
has agreed to buy British peer Consort Medical
for 505 million pounds or 6.3 billion crowns ($649
million), the companies said on Monday.
They said the owners of Consort Medical, which makes drug
delivery devices including nasal inhalers and pharmaceutical
compounds, would receive 10.10 pounds per share, valuing the
share capital at 505 million pounds on a fully diluted basis.
They said in separate statements that the board of Consort
Medical had unanimously recommended the cash offer, news of
which sent Consort Medical's shares up 43% to 10.40 pounds at
0841 GMT.
They said the offer represented a premium of 39.1% to
Consort Medical's closing price on Friday of 726 pence.
Recipharm, which develops and manufactures products for
other companies in the industry on a contractual basis, said the
deal would boost its scale and profitability, giving it annual
pro forma sales of 10.8 billion crowns and pro forma operating
profit before depreciation and amortisation of 1.79 billion.
"The combination of Recipharm and Consort is highly
complementary given that both organisations provide different
products and services within the same value chain for a number
of customers," Recipharm said.
Its shares were down 0.5% at 0842 GMT, underperforming the
wider market in Stockholm which was roughly unchanged.
Recipharm said it intended to carry out one or several share
issues totalling around 2.5 billion crowns to repay loans taken
to fund the deal and to lower its net debt.
It said it expected to close the deal in the first quarter
of 2020.
($1 = 9.7061 Swedish crowns)
(Reporting by Anna Ringstrom, and Pushkala Aripaka in
Bengaluru; Editing by Kirsten Donovan)
