LONDON--Shire PLC (SHP.LN) is buying rare disease company
ViroPharma Inc. (VPHM) for $4.2 billion, or $50 a share, a deal
that would enhance its short- and long-term revenue growth profile,
the U.K. specialty biopharmaceutical company said Monday.
The purchase price is a 27% premium to ViroPharma's closing
share price Friday.
Shire said it expects annual cost synergies of $150 million by
2015, over and above the improved operating leverage already being
driven by the company's ongoing "One Shire" reorganization. The
deal is expected to be immediately accretive to Shire's non-GAAP
earnings per share after completion and to enhance its earnings
growth profile, it said.
The acquisition to be affected by a tender offer and funded from
Shire's cash resources as well as existing and new bank
facilities.
Shire shares closed in London Friday at 2796 pence, valuing the
company at 15.49 billion pounds ($24.9 billion).
-Write to Ian Walker at ian.walker@wsj.com
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