PITTSBURGH- Mylan Laboratories Inc., announced Saturday that it will acquire Merck's generics business, Merck Generics, for $6.7 billion in cash.
The transaction is expected to be completed by the end of 2007.
The combination of Mylan and Merck Generics will create a vertically and horizontally integrated generics and specialty pharmaceuticals company. On a pro forma basis, for calendar 2006, the combined company would have had revenues of about $4.2 billion, an EBITDA of almost $1.0 billion and nearly 10,000 employees.
Hank Klakurka, currently President and CEO of Merck Generics, will continue with Mylan, and Mylan has executed long-term employment agreements with members of Merck Generics' senior management team.
Merck Generics is a subsidiary of Merck KGaA, a global chemical and pharmaceutical conglomerate. Merck Generics' U.S. specialty pharmaceuticals business, Dey, focuses on respiratory and allergy products and had $650 million in revenues in 2006. Merck Generics had sales of $2.45 billion in 2006 and employs about 5,000 people worldwide.