More Waves in Pharma: Endo Buys TPG Capital's Par Pharma for $8 Billion

Endo International plc ENDP will buy Par Pharmaceutical from TPG Capital for $1.5 billion in stock and $6.5 billion in cash, the companies announced. Endo is trading nearly 1 percent higher in premarket trading on news of the deal, which will create one of the top five generic drug businesses in the U.S.

The acquisition comes just two months after Endo abandoned its bid for Salix Pharmaceuticals, Ltd. SLXP. Valeant Pharmaceuticals Intl Inc VRX ultimately won out on its Salix bid, after bidding with an all-cash offer.

On CNBC this morning, Endo Chief Executive Officer Rajiv De Silva said that he was drawn to Par Pharma because of its diverse portfolio and a "product pipeline that is arguably one of the best" in the industry. The company expects the deal to provide $175 million in operational and tax savings in the first year following the deal. Expected to close in H2 2015, the deal is the first since Endo shifted its tax base to Ireland.

TPG purchased Par Pharma for less than $2 billion in 2012. Par CEO Paul Campanelli will join Endo and lead its generics business, according to the companies.

Based on Friday's closing price of $85.35, Endo gained 18.3 percent this year. The stock has come off sharply of its 52-week high at $96.58 in mid-April.