Aptalis to be Acquired by Forest Laboratories for $2.9 Billion

Aptalis recently announced that it has signed a definitive agreement to be acquired by Forest Laboratories, Inc. Forest has agreed to acquire Aptalis from TPG, the global private investment firm, for $2.9 billion in cash, pending required reviews by anti-trust authorities. Aptalis is a global specialty pharmaceutical company that has approximately 1,000 employees worldwide. The company provides innovative, effective therapies for unmet medical needs, including cystic fibrosis and gastrointestinal disorders. Aptalis achieved sales of $688 million in FY2013, which ended September 2013. TPG acquired Aptalis, formerly known as Axcan Pharma, for $1.3 billion in 2008. “Under TPG’s ownership, Aptalis has grown through internal product development and acquisitions, and now our new, larger, multi-national owner will provide increased opportunities,” said Frank Verwiel, MD, President and Chief Executive Officer of Aptalis. “Forest’s acquisition of our company is a testament to the strength of the business we have built. I believe this transaction will profoundly enhance our ability to serve our patients and their caregivers as well as our employees, customers, and stakeholders.” “Over the course of our partnership, Frank and his world-class team have built a strong, diversified business with an exciting pipeline,” said Todd Sisitsky, Partner, TPG Capital. “The company has grown throughout our ownership period, and we are enthusiastic to see a dynamic specialty pharmaceutical company like Forest partner with Aptalis on the next leg of the company’s growth.” The transaction is expected to close in the first half of 2014 pending regulatory review and satisfactory completion of necessary closing conditions. Debevoise & Plimpton LLC and Cleary Gottlieb Steen & Hamilton LLP served as Forest’s legal counsel, and Aptalis was advised by Ropes & Gray, LLP. Morgan Stanley acted as financial advisor to Forest. J. P. Morgan Securities LLC acted as financial advisors to Aptalis. Aptalis Pharma is a privately held, leading specialty pharmaceutical company providing innovative, effective therapies for unmet medical needs, including cystic fibrosis and gastrointestinal disorders. Aptalis has manufacturing and commercial operations in the US, the European Union, and Canada, and its products include ZENPEP, CANASA, CARAFATE, PYLERA, RECTIV, VIOKACE, ULTRESA LACTEOL, DELURSAN, PANZYTRAT, and SALOFALK. Aptalis also formulates and clinically develops enhanced pharmaceutical and biopharmaceutical products for itself and others using its proprietary technology platforms, including bioavailability enhancement of poorly soluble drugs, custom-release profiles, and taste-masking/orally disintegrating tablet (ODT) formulations. For more information, visit www.aptalispharmaceuticaltechnologies.com. Forest Laboratories is a leading, fully integrated, specialty pharmaceutical company largely focused on the US market. The company markets a portfolio of branded drug products and develops new medicines to treat patients suffering from diseases principally in five therapeutic areas: central nervous system, cardiovascular, gastrointestinal, respiratory, and anti-infective. Its strategy of acquiring product rights for development and commercialization through licensing, collaborative partnerships, and targeted mergers and acquisitions allows the company to take advantage of attractive late-stage development and commercial opportunities, thereby managing the risks inherent in drug development. For more information, visit www.frx.com.