Actavis agrees to buy Botox-maker Allergan for $66bn

Under the deal, Allergan investors would receive $129.22 in cash and 0.3683 Actavis shares for each share of the Botox-maker’s common stock.

The combination will create one of the top 10 global pharmaceutical companies by sales revenue.

Actavis CEO and president Brent Saunders said: "This is a financially compelling transaction. With pro forma revenues in excess of $23bn anticipated in 2015, this combination doubles the revenue generated by our brands business and doubles the international revenue of the combined company.

"With this combination, we plan to transform the growth profile of our pharmaceutical business and have the ability to generate organic revenue growth at a compound annual growth rate of at least 10% for the foreseeable future.

"The combination is expected to generate strong free cash flow of more than $8bn in 2016 and substantial growth thereafter, which will enable the rapid repayment of debt."

The transaction has received approval from the Boards of Directors of both the companies as well as support from their management teams.

Actavis executive chairman Paul Bisaro said: "In the US, the combination makes us more relevant to an even broader group of physicians and customers.

"Overseas, it will enhance our commercial position, expand our portfolio and broaden our footprint in Canada, Europe and Southeast Asia and other high-value growth markets, including China, India, the Middle East and Latin America."

Earlier in April 2014, Valeant Pharmaceuticals and investor Bill Ackman revealed details of their offer to acquire Allergan for about $45bn.

This deal with Actavis finally ends a seven-month hostile pursuit by Bill Ackman and Valeant.

Image: Allergan headquarters in Irvine, California, US. Photo: courtesy of File Upload Bot (Magnus Manske).