Endo Makes an Acquisition
Endo Health Solutions is attempting to grow through asset purchases. The company announced that Qualitest, a subsidiary, has agreed to acquire Boca Pharmaceutical for $225 million in cash.
Boca is a privately held firm headquartered in Florida that concentrates on the manufacture of specialty generic drugs. Endo said it expects the deal to be "immediately accretive" to its 2013 adjusted diluted earnings per share. As a stand-alone entity, Boca's forecast EBITDA for full-year 2013 is anticipated to come in at roughly $50 million.
Endo said the acquisition would be funded by its cash on hand.
The purchase is not planned to be an isolated incident. In the press release announcing the news, Endo quoted CEO Rajiv De Silva as saying that it "is the first of several transactions we plan to execute as we transform Endo into a more focused specialty health care company with a lean operating model, able to deliver consistent earnings and revenue growth for our shareholders."
The Boca deal is expected to close before the end of this year.
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