Axcan Holdings plans new debt financing for purchase of Eurand

By Sara Rosenberg

New York, Dec. 1 - Axcan Holdings Inc. has received a debt financing commitment to help fund its acquisition of Eurand NV, according to a news release.

Bank of America, Barclays and RBC are the lead banks on the debt, which is expected to come to market sometime next year, a market source told Prospect News.

Under the agreement, Axcan will acquire all the outstanding shares of Eurand for $12 per share in cash. The fully diluted equity value of the transaction is about $583 million.

A wholly owned subsidiary of Axcan will commence a tender offer for all of the outstanding shares of Eurand, and the acquisition is subject to a minimum tender of 80% of Eurand shares and receipt of antitrust approval.

Closing is expected in the second quarter of 2011.

Axcan is a Quebec-based pharmaceutical company focused on the treatment of gastrointestinal disorders. Eurand is an Amsterdam-based specialty pharmaceutical company.

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