Elan's other asset is a pipeline of neuropsychiatric drugs, one of which the Irish company had planned to spin off into a new company before shareholders blocked the move last month.
Perrigo makes over-the-counter drugs, nutritional products and prescription pharmaceuticals, with its main markets the U.S., Mexico, Israel and the U.K. It had fiscal 2012 sales of $3.2 billion and net profit of just under $393 million, before adjustments.
The takeover will take place via a scheme of arrangement, which requires clearance from holders of 75% of the Elan stock that is voted at a forthcoming meeting, approval from Perrigo shareholders and the go-ahead from the Irish High court, as well as normal regulatory approvals.
The new company will be listed on the New York Stock Exchange and in Tel Aviv.
(C - Get Report)
bankers including Chris Hite, Bill White and Dave Magstadt are advising Elan, alongside
Davy Corporate Finance's
(MS - Get Report)
Colm Donlon, Ondra Partners' Michael Tory. Elan's legal advisers are
Cadwalader, Wickersham & Taft
Perrigo's advisers include
Punit Mehta and Derek Shakespeare.
Written by Laura Board