News of a takeout launched shares of
Adams Respiratory Therapeutics
Reckitt Benckiser Group
has agreed to buy the Chester, N.J.-based specialty pharmaceutical company for about $2.3 billion, or $60 a share -- which marks a 37.3% premium from the stock's $43.68 close on Friday. It will give Britain-based Reckitt Benckiser Group an entry into the U.S. health care market.
Adams develops and markets over-the-counter and prescription treatments of respiratory disorders under its Mucinex brand of expectorants, which includes the top-selling over-the-counter expectorant in the U.S., and its Delsym brand of cough suppressants. Adams' net sales grew 44% between fiscal 2005 and 2007.
Reckitt Benckiser, based just outside of London, specializes in household cleaning, health and personal care products, with brands such as Lysol, Woolite and Airwick. The company's health-care products include an antiseptic, analgesic, gastro-intestinal remedy and cold/flu remedies in the U.K. The company expects the deal will be immediately earnings-enhancing excluding a one-time $60 million restructuring charge.
The boards of both companies have unanimously approved the transaction, and Reckitt plans to launch the tender offer for Adams' shares within the next 20 business days, expecting the offer to end in January or early February.
Shares of Adams rose $15.37, or 35.2%, at $59.05 in recent trading Monday morning.