Pharma BD Deal Intelligence

Fresenius SE / Fresenius Kabi / APP Pharmaceuticals, Inc.

2008 · Acquisition/Merger · $3.7B · Complete

CALLED IT — OFF BY 4

APP gave Fresenius Kabi its US foothold and became a core, still-operating platform, but the deal's own earnout targets were missed and legacy plants drew FDA warning letters before recovering.

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The coverage arc

Jul 07, 2008 APP Pharmaceuticals 8-K Exhibit 99.1 (merger announcement) Bullish

Fresenius chairman Ulf Mark Schneider: "APP is a fast-growing, highly profitable company with a strong management team that has an excellent market position in…

Jul 07, 2008 CNBC Neutral

CNBC reported $3.7B base deal with up to $970M CVR ($6/share contingent on 2008-2010 EBITDA targets), characterizing the transaction as Fresenius's largest…

Sep 10, 2008 Fresenius Form 425 (closing release) Bullish

Schneider: "We are pleased to be able to complete this major transaction in a very short time... Through APP, Fresenius Kabi enters the U.S. pharmaceuticals…

Source summaries from our enrichment pipeline; follow links for originals.

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$23/share cash + CVR up to $970M ($4.6B with CVR; up to $5.6B with assumed debt); injectable generics; closed Sep 10 2008

Did it work? Outcome assessment

APP gave Fresenius Kabi its US foothold and became a core, still-operating platform, but the deal's own earnout targets were missed and legacy plants drew FDA warning letters before recovering.

Strategic verdict
Partially Achieved

Key facts

Related deals — scored

DealYearValueOutcome
Fresenius SE / Fresenius Kabi / APP Pharmaceuticals, Inc. (this deal)2008$3.7B67
ViroPharma Incorporated / Lev Pharmaceuticals, Inc.2008$443M88
Roche Holding AG / Ventana Medical Systems Inc.2008$3.4B88
Shire plc / Jerini AG2008$521M85
Alkermes plc / Cephalon, Inc. (Vivitrol rights)2008$27M83
Sanofi-Aventis / Symbion Consumer (Primary Health Care)2008$544M71
Takeda Pharmaceutical Company Ltd. / Millennium Pharmaceuticals2008$8.8B68

Compare all 7 side-by-side →

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