Teva completes ratiopharm acquisition

Teva Pharmaceutical Industries Ltd. (NASDAQ: TEVA) announced today that it has completed the acquisition of ratiopharm, Germany's second largest generics producer. Following the acquisition, Teva will be the number one generic company in Europe, holding the leading market position in ten countries, as well as ranking in the top three in seven additional countries. In addition, the transaction will significantly increase Teva's sales in Canada.

"This is an exciting day for Teva and ratiopharm," said Shlomo Yanai, Teva's President and CEO. "Teva, the world's leading generic pharmaceutical company, will now become the number one generics company in Europe as well. Increasing Teva's market share in Europe—a geography with tremendous potential for generics penetration—is an important pillar of our long-term growth strategy. With the acquisition of ratiopharm we will become the leader in key European markets and we are well-positioned to become the leader in many other European markets in the near future."

Mr. Yanai added, "We have great respect for ratiopharm's tradition of leadership, and their dedication to excellence and quality. We are thrilled to welcome ratiopharm's outstanding team into the Teva family, and we are confident that the combined experience of the Teva and ratiopharm teams will ensure a quick, smooth, and successful integration process. Together we will continue to make affordable, high-quality medicine accessible to more and more patients across Europe".

Oliver Windholz, Chief Executive Officer of ratiopharm, said, "We are proud to join the Teva family. We have long viewed Teva as the right match for our company, thanks to its clearly defined strategic vision and commitment to generic medicines and its highly reputable management. We look forward to making this acquisition a success story both for our employees and for Teva, and will do our utmost to leverage ratiopharm's activities into a truly advantageous business for Teva."

The ratiopharm acquisition was structured as a 'locked box' transaction. Accordingly, Teva paid €3.625 billion for the ratiopharm shares, which reflects the agreed enterprise value (on a cash free/debt free basis), plus accrued interest from January 1, 2010 to the closing date, which totaled €186 million. Teva benefited from all increases in equity and assets of ratiopharm from that date. The U.S dollar consideration paid by Teva was approximately $4.95 billion.

As previously announced, Teva expects synergies of at least $400 million, which should be fully realized within three years.