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Akorn to acquire VersaPharm for $440 million

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Akorn Inc. announced in a press release that it has entered into an agreement to acquire VPI Holdings Corp., the parent company of VersaPharm Inc., for $440 million cash.

VersaPharm is a privately held developer and marketer of multisource prescription pharmaceuticals, specializing in niche therapeutic categories of dermatology, tuberculosis and hemophilia. They have an addressable IMS market value of more than $700 million, according to the press release.

VersaPharm’s expertise in developing topical products aligns with Akorn’s new manufacturing platform through the merger with Hi-Tech Pharmacal.

The press release stated that the acquisition is expected to add $90 to $100 million in annual revenues and $0.10 to $0.12 in earnings per share.

The transaction is being funded through approximately $445 million in term loan borrowings. Akorn anticipates closing the transaction in the third quarter of 2014.