NEW YORK (AP) -- Israeli generic drug maker Teva Pharmaceutical Industries Ltd. said Monday it will pay $360 million in cash for Bentley Pharmaceuticals Inc. in a move to expand operations in Spain.
Teva will pay $15.02 for Exeter, N.H.-based generic drug maker Bentley, which is spinning off its drug delivery business to shareholders prior to the Teva transaction. The purchase price represents a 9 percent premium to Bentley's closing stock price Friday of $13.74.
Bentley shareholders also will receive shares of CPEX Pharmaceuticals Inc. after the spin-off.
Bentley makes and markets about 130 pharmaceutical products to physicians, pharmacists and hospitals primarily in Spain, as well as certain other parts of the European Union. Bentley's generic pharmaceutical operations generated about $14 million in revenue of the year ended Dec. 31, 2007.
''Spain was identified as one of our target markets in the strategic review we conducted last year,'' said Shlomo Yanai, Teva's president and chief executive, in a statement. ''We are extremely pleased that we will have Bentley's strong management and work force, complementing our existing management team, to support our growth strategy.''
Teva initially established a presence in Spain in 2004, and is currently the fourth-largest generic company in Spain in the hospital market. After the acquisition closes, Teva will offer the Spanish market more than 170 products and will have over 45 products pending generic product registrations.
Teva expects the deal to add to earnings within 12 months of closing, expected in the third quarter of 2008.
The boards of both companies have unanimously approved the transaction. Closing is subject to completing the spin-off of Bentley’s drug delivery business, antitrust clearance and the approval of Bentley's shareholders. Teva shareholder approval isn't required.
James Murphy and Bentley Vice Chairman Michael McGovern, who hold a total 13.8 percent of Bentley shares, have agreed to vote their shares in favor of the transaction. Teva said it will fund the acquisition from its internal resources.
