Jazz Pharma To Buy Celator For $1.5 Bln - Quick Facts

(RTTNews) - Bio-pharmaceutical company Jazz Pharmaceuticals plc (JAZZ) said early Tuesday that it would acquire oncology-focused bio-pharmaceutical company Celator Pharmaceuticals for $30.25 per share in cash, or about $1.5 billion.

The deal, which is expected to close in the third quarter of 2016, would add VYXEOS, an investigational product in development as a treatment for Acute Myeloid Leukemia (AML), to Jazz's portfolio, with U.S. regulatory submission planned by end of third quarter 2016.

The acquisition, structured as a tender offer and second step merger, is expected to be accretive to Non-GAAP adjusted earnings per share beginning in 2018 and beyond.

The closing of the tender offer is conditioned upon customary conditions, including the tender of a majority of the outstanding shares of Celator common stock and expiration or termination of the Hart Scott Rodino waiting period.

Jazz expects to finance the deal with a combination of cash on hand and borrowings under its senior secured credit facility.

While Jazz Pharma's financial advisor for the deal is RBC Capital Markets, and its primary legal advisor is Cooley LLP, Celator's financial advisor is MTS Health Partners, and its primary legal advisor is Kirkland and Ellis LLP.