Endo Buys Par Pharmaceutical for $8.05B to Expand in U.S. Generics

NEW YORK (The Deal) -- Branded generics and medical devices maker Endo International (ENDP) on Monday agreed to buy Par Pharmaceutical for $8.05 billion in what appears to be a profitable exit for Par's owner and proof that drugmakers are still prescribing major deals.

Nasdaq-listed, Dublin-based Endo would pay $6.5 billion in cash and 18 million of its own shares, which it valued at $1.55 billion, to buy Par from Fort Worth, Texas-based private equity shop TPG. Endo said it would also absorb the target's debt, which stood at $1.93 billion at the end of last year.

"We believe the acquisition of Par underscores the continued execution of Endo's value-driven M&A strategy and helps deliver on our goal of achieving double-digit revenue growth for the overall business over the long-term," said Endo CEO and President Rajiv De Silva in a statement.

TPG will likely profit nicely in the agreement after putting $700 million of its own funds to buy Par for $1.9 billion in 2012, which was publicly traded at the time. TPG filed for an initial public offering for the business in March, when it organized $425 million in new financing at Par to pay a $535 million dividend.

That's on top of a $494.3 million dividend in February 2014 as Par bought injectables maker JHP Group in just one of the string of acquisitions made by Par under TPG. TPG put $110 million of its own equity into the JHP acquisition.

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