Mylan To Acquire Matrix

Mylan Laboratories has announced plans to acquire Matrix Laboratories Ltd. for approximately $736 million. Under the terms of the transaction, Mylan will purchase 51.5% of Matrix’s shares outstanding under an agreement with certain selling shareholders and will make an “open offer” to Matrix’s remaining shareholders to acquire as much as 20% more of Matrix’s shares outstanding. Matrix will remain a publicly traded company in India and will continue to operate on an independent basis, according to Mylan

Robert J. Coury, Mylan’s vice chairman and chief executive officer, commented, “This is an extremely complementary transaction that accomplishes a number of Mylan’s key objectives. Mylan is executing on its commitment to establish a global platform and expand its dosage forms and therapeutic categories. Additionally, this acquisition deepens Mylan’s vertical integration and enhances its supply chain capabilities. The transaction will allow Mylan and Matrix to strengthen and expand their core businesses and competencies, while creating significant opportunities for global expansion and growth.”

He added, “In addition to bringing substantial tangible benefits in the form of their world-class manufacturing capabilities and product portfolios, Matrix and its European subsidiary, Docpharma, have demonstrated a deep understanding of their respective regions and markets. We are very excited about the transaction and expect, based on our time together thus far, a smooth and effective integration. We have found that Matrix and Docpharma have cultures and values that are extremely consistent to our own at Mylan.”

Mylan and Matrix together will have approximately 5,100 employees in 10 countries. Matrix will provide Mylan with a significant presence in important emerging pharmaceutical markets, including India, China, and Africa, as well as a European footprint and distribution network through Matrix’s Docpharma subsidiary. By combining Matrix’s API and drug development business with Mylan’s expertise in finished dosage forms FDFs, Mylan will be able to capture incremental pieces of the value chain through backward vertical integration.