Endo to Acquire Generics Company Qualitest for $1.2 Billion

Endo Pharmaceuticals (ENDP) agreed to buy generics company Qualitest Pharmaceuticals for $1.2 billion cash.

Qualitest is the sixth-largest U.S. generics company as measured by prescriptions filled. Qualitest will add about $400 million to Endo's annual revenue and 40 cents per share in annual adjusted earnings, Endo said in a statement.

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"We believe that this transaction will accelerate and diversify our revenues and earnings streams, while also providing our partners in the industry with a wider range of products and services at multiple value points," David Holveck, CEO of Endo, said.

The deal is expected to close no later than the end of the first quarter of 2011. Endo will finance the deal using $500 million from its balance sheet, drawing down an existing $300 million revolving credit facility and as much as $400 million of extra financing.