Pfizer Inc, the world's largest drug maker, today disclosed plans to acquire King Pharmaceuticals Inc, a diversified specialty pharmaceutical discovery and clinical development company, for $3.6 billion in cash, to strengthen its position in the pain relief market.
The proposed deal will be the $50-billion drug giant's largest acquisition since it acquired Wyeth for $68 billion in January 2010. (See: Pfizer-Wyeth create $68-billion blockbuster deal)
Pfizer, based in New York, will pay $14.25 a share, a premium of 40 per cent over King's closing share price of $10.15 on Monday.
King, an S&P 500 Index company based in Bristol, Tennessee, is a vertically integrated branded pharmaceutical company that develops, manufactures and markets therapies and technologies primarily in specialty-driven markets, including neuroscience, hospital and acute care medicines.
King currently operates manufacturing facilities in Tennessee, Michigan, Missouri, Florida and Wisconsin.
King's revenues have grown from $13 million in 1994 to over $1.78 billion in 2009.