NEW YORK (TheStreet) -- Forest Laboratories (FRX) soared on Wednesday, booking double-digit gains by late morning. The pharmaceutical giant was popping after announcing it had entered into a definitive agreement to acquire privately-held Aptalis, a gastrointestinal and cystic fibrosis specialist.
The acquisition, which will cost Forest $2.9 billion in cash, will be subject to review by anti-trust authorities in the U.S. and Canada. If approved, the deal will be accretive to Forest's earnings by financial year 2015.
"The acquisition of Aptalis helps diversify Forest while advancing our strategy to create blockbuster therapeutic areas," said Forest CEO Brent Saunders in a statement.
As a result of the deal, Forest expects to realize $125 million in cost synergies and to add nearly $700 million in revenue by the next fiscal year.
By late morning, shares had added 16% to $68.16.