Quantcast
Get breaking news alerts via email

Click here to manage your alerts
Mylan to buy Abbott business line in $5.3B deal
Acquisitions » Combined company will be organized in the Netherlands to reduce taxes.
First Published Jul 14 2014 09:46 am • Last Updated Jul 14 2014 12:45 pm

Pittsburgh • Generic drugmaker Mylan is buying Abbott Laboratories’ generic-drugs business in developed markets for stock valued at about $5.3 billion.

Mylan said Monday the deal will diversify and expand its business outside the U.S. The combined company will be organized in the Netherlands, which will help reduce its tax expenses. The company will keep its headquarters near Pittsburgh.

Join the Discussion
Post a Comment

The deal is expected to lower Mylan’s tax rate to approximately 20 percent to 21 percent in the first full year, and to the high teens after that.

Several other U.S. companies are using mergers to reincorporate in countries with lower tax rates. These moves are raising concerns among U.S. lawmakers because they can cost the federal government billions in tax revenue.

The business to be acquired by Mylan encompasses more than 100 generic and specialty drugs sold in Europe, Japan, Canada, Australia and New Zealand. Some of the products include Creon, Influvac, Brufen, Amitiza and Androgel. It also include manufacturing plants in France and Japan.

The portfolio of products accounted for about $2 billion in sales last year. The division has about 3,800 employees.

Abbott is keeping its branded generic drug business in emerging markets. That business had 2013 sales of $2.9 billion. It is also keeping its other businesses and products in developed markets.

Abbott will own about 21 percent of the combined Mylan company — which will be called Mylan NV — but does not intend to remain a long-term shareholder. Shares of Mylan NV will trade on the Nasdaq under Mylan’s existing ticker symbol, "MYL."

The transaction is expected to about double Mylan’s revenue in Europe by strengthening its presence in countries such as Italy, the U.K., Germany, France, Spain and Portugal. It also is expected to more than double Mylan’s revenue in Canada and Japan, and strengthen its business in Australia and New Zealand. The deal also gives Mylan a meaningful presence in the specialty and branded generics market in Central and Eastern Europe.

The deal is expected to close in early 2015. It is expected to immediately add to Mylan’s earnings, to the tune of about 25 cents per share in adjusted earnings in the first year, increasing through 2018.


story continues below
story continues below

Mylan Inc. is based in Canonsburg, Pa.



Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment


About Reader Comments


Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Videos
Jobs
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.