Akorn to buy Hi-Tech Pharmacal for $640M

|By:, SA News Editor

Akorn (AKRX) has agreed to pay $640M to acquire Hi-Tech Pharmacal (HITK), which specializes in difficult-to-manufacture liquid and semi-solid dosage forms of drugs.

The offer of $43.50 a share represents a premium of 23.5% to Hi-Tech's closing price of $35.21 yesterday.

The combined company is expected to generate annual revenues of over $500M, with the deal expected to add to Akorn's adjusted EPS immediately after closing. The company expects to achieve $15-20M in annual run-rate synergies within 12 months after that.

Hi-Tech provides oral solutions and suspensions, topical ointments and creams, nasal sprays, otics, sterile ophthalmics, and sterile ointment and gels.

Hi-Tech's shares are suspended until 7:30 ET, while those of Akorn are +0.7%. (PR)