Paving the way for European antitrust clearance, Teva Pharmaceutical Industries Ltd. (TEVA - Get Report) has agreed to sell the U.K. and Ireland assets inherited in connection with its $40.5 billion acquisition of the Allergan plc (AGN - Get Report) generics business that closed earlier in the year.
The buyer is Indian pharmaceutical company Intas Pharmaceuticals Ltd., which via its Accord Healthcare subsidiary has agreed to pay 603 million pounds ($769 million) for the group of assets and operations.
The deal is expected to close in the next three months, according to a Wednesday, Oct. 5, announcement.
For Israeli-headquartered Teva, the sale is the product of a review conducted by the European Commission requiring divestitures associated with the Allergan generics deal. Following completion of the asset sale to Intas, Teva said it will have satisfied the regulatory agency's sale requirements.
The divestiture will include a portfolio of unidentified generic medicines, plus a manufacturing plant in Barnstaple, England. Teva said it will retain a number of non-overlapping generic products in addition to specialty medicines and over-the-counter products.
Intas, according to a financial media report in India, trumped bids from fellow Indian drugmaker Aurobindo Pharma Ltd. as well as Cinven Ltd., a London-headquartered private equity sponsor.
Following a lengthy review process, the Federal Trade Commission in late July granted Teva approval for the merger after the parties came to terms on what represented the most sizable drug divestiture order in pharmaceutical history.
Teva agreed to unload 79 drug products to a group of 11 rival pharmaceutical companies, in addition to a number of other safeguards, one year after the deal's initial announcement.
Dublin-headquartered Allergan ultimately received $33.4 billion in cash and 100.3 million shares of Teva stock valued at $5.4 billion, it said upon completion of the deal.
Winners in the Teva-Allergan generics divestiture process mandated by the FTC included Australia's Mayne Pharma Group Ltd., privately held Prasco Laboratories, Impax Laboratories Inc. (IPXL) , Dr. Reddy's Laboratories Ltd. (RDY - Get Report) , Sagent Pharmaceuticals Inc. (SGNT) , Cipla Ltd., Zydus Worldwide DMCC, Mikah Pharma LLC, Perrigo Pharma International DAC, Aurobindo Pharma USA Inc. and 3M Co. (MMM - Get Report) .
Teva shares retreated less than 1% to $45.12 a share Wednesday afternoon.
Greenhill & Co. is serving as financial adviser to Teva on the U.K. and Ireland transaction, while Pinsent Masons LLP offered legal counsel. Rothschild & Co. is providing banking advice to Intas and Accord on the deal.
For the overall purchase of Allergan's generics business Teva tapped Sullivan & Cromwell LLP and Kirkland & Ellis LLP for legal counsel. Greenhill also provided financial advice.
A Teva spokeswoman didn't immediately return requests for further comment on Wednesday.
—David Marcus contributed to this report.