APP Pharmaceuticals acquisition sends shares up 30%
Fresenius SE announced the purchase of APP Pharmaceuticals for $3.7 billion.
Fresenius, a global health care group based in Germany, has over 116,000 employees and brought in over $17 billion in sales last year. APP employs about 1,400 workers and has a handful of production facilities in the U.S. and Canada. Last year, APP brought in approximately $640 million in sales.
The acquisition’s price range announced before domestic markets opened had an upper limit of $4.6 billion. The news sent shares up as much as 33 percent in early trading hours.
The official price tag of $3.7 billion was announced a few hours later. While the cost to Fresenius is almost $1 billion less than the higher end of the previously announced range, this still represents a hefty premium for APP shareholders.
APP shares which were worth less than $18 heading into the holiday weekend are now valued at over $23.
Tags: acquisition, APP, Fresenius, pharmaceuticalRelated Stories
POSTED IN: Acquisitions, Market, News, Uncategorized
3 opinions for APP Pharmaceuticals acquisition sends shares up 30%
Dan Waters
Jul 9, 2008 at 1:12 pm
It always amazes me how fast and unpredictably the pharmaceuticals move and how often they consolidate, probably more than any other sector. Ive never been so fortunate to ride one of the acquisition gains in that field though MSFT and YHOO was a fun ride.
Rob Curl
Jul 13, 2008 at 11:27 am
Pharmaceuticals are like the crap tables of the stock markets. There’s always flashy players and lots of noise from the crowd, but it’s near impossible to win consistently! That is until you start playing by house odds and sell the volatility to the speculators :)
Sean Sweeney
Jul 13, 2008 at 4:32 pm
That is really good news for shareholders of APP. I am very interested in watching how Fresenius SE stock does in the near future. I am looking to buy stock Pharmaceuticals sector, because I am sick of watching my investment in Merck flounder.
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