Teva announces deal to buy Barr

Teva Pharmaceutical Industries Limited has announced it has signed a definitive agreement to purchase Barr, the fourth largest generic drug company in the world.

The deal is worth approximately $7.46 billion (3.74 billion pounds), in addition to the assumption of net debt worth about $1.5 billion.

It is expected the transaction will close late this year.

Teva claims the acquisition will strengthen its position in key European markets.

In 2007, the revenues of the combined company would have totalled about $11.9 billion.

The merged firm will operate in more than 60 countries and will employ some 37,000 people across the globe.

Teva states the deal will allow it to offer more products while also permitting increased access to affordable medicines.

Shlomo Yanai, president and chief executive officer of Teva, said: “This is a transaction in which two great, strong companies are joining forces to capture an even greater share of the growing opportunities in generics.”

Teva and Barr have announced they will host a live audio webcast of their investor meeting discussing the deal later today.