Genzyme Corporation and SangStat Medical Corporation have reached an agreement under which Genzyme will acquire SangStat in an all cash transaction valued at $22.50 per outstanding share, or approximately $600 million.
Genzyme expects to complete the acquisition in early September.
The transaction is expected to be dilutive to Genzyme’s GAAP earnings due to amortization through 2004.
Excluding amortization, it is expected to be neutral to slightly accretive to Genzyme’s earnings through 2004, and accretive beyond that time.The $22.50 per share transaction amount represents an approximately 45 percent premium over the closing price of SangStat’s shares on Aug. 1. The transaction has been approved by the boards of directors of both companies, and is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act.In association with the acquisition, Genzyme anticipates it will incur certain one-time charges, which will be detailed at the close of the transaction.
Henri A. Termeer, chairman and chief executive officer, Genzyme Corporation, said “This is a strong strategic fit for Genzyme, which adds a growing product, a strong pipeline, and a skilled team that nicely complements our ongoing programs in the high-potential area of immune mediated diseases. Thymoglobulin is an excellent product that has the potential to transform the way transplant teams manage the care of their patients. We will use our combined resources and expertise to expand its areas of use and broaden its availability throughout the world.”
Richard D. Murdock, chairman, president, and chief executive officer, SangStat Medical Corporation stated, “The synergies between Genzyme and SangStat are clear, and we believe this transaction brings significant value to SangStat’s shareholders. In addition, SangStat is very pleased to add its successful team of dedicated professionals to one of the world’s leading global biotechnology companies.”
Genzyme Corporation is a global biotechnology company dedicated to making a major positive impact on the lives of people with serious diseases.
SangStat Medical Corporation is a global biotechnology company focused on immunology and working to discover, develop and market high value therapeutic products in the autoimmune, hematology/oncology and immunosuppression areas.