Mylan To Buy Renaissance Acquisition Holdings' Generic And Specialty Business For $950 Million

Mylan N.V. (NASDAQ: MYL) struck an agreement to buy the non-sterile, topicals-focused specialty, as well as, generics business of Renaissance Acquisition Holdings, LLC for $950 million in cash at closing. That apart, the company would pay an additional contingent payment of a maximum of $50 million, subject to customary adjustments.

According to the company, the transaction is expected to be immediately accretive to its adjusted earnings per share upon closing. The company indicated that the closing of this transaction is conditional upon regulatory approval and other customary closing conditions. The transaction is expected to close before the third quarter of 2016.

Reacting to the acquisition, Mylan CEO, Heather Bresch, said, "The dermatology/topicals space has long been an area of focus for Mylan and one that we have targeted for expansion. This is a strong and growing business in a very attractive category, which is highly complementary to Mylan's existing assets and the pending addition of the Meda dermatology portfolio. We see significant opportunities to accelerate the growth potential of the Business as part of the global Mylan platform, as we maximize our combined assets across customer channels and geographies."

He continued, "This acquisition was accounted for in our anticipated capital structure and does not require any additional financing. As such, we see no impact to the leverage ratio of 3.8x debt-to-adjusted EBITDA we anticipated following the closing of the Meda transaction, and we will retain ample financial flexibility for future value-creating initiatives."

Mylan indicated it was buying the Business on a cash-free, debt-free basis and expects to finance the deal with help of cash on hand and available borrowings under existing credit facilities. In 2015, the Business had about $370 million of revenues. The unit's commercial segment has a diversified and attractive portfolio of specialty brands and generic products in the dermatology space, and a deep pipeline of complex topical generics and brands in active development.

The company said the Business has two high-quality manufacturing sites with capabilities and capacity in creams, ointments, aerosols/foams, gels, suspensions, liquids and suppositories, which were complementary to its current capabilities.