INVESTMENT IN the healthcare sector is hotting up, leading to a busy period for mergers and acquisitions (M&A) teams, says Clayton Utz.
The firm is advising Mayne Pharma on its $2.6 billion acquisition by US-based hospital products manufacturer Hospira Inc by scheme of arrangement.
Baker & McKenzie is acting for Hospira on the deal.
Clayton Utz said the deal had reached a milestone recently with the filing of scheme documentation with the Australian Stock Exchange.
Clayton Utz national M&A practice head Rod Halstead and corporate M&A partner Jonathan Swain have been advising the Mayne Pharma board and senior management on the due diligence process with parties interested in Mayne Pharma, but ultimately recommended Hospira to the board.
Under the scheme of arrangement, Hospira will acquire all outstanding shares in Mayne Pharma for $4.10 a share, which will value the business at more than $2.6 billion.
“We are seeing significant consolidation in the sector worldwide, with a number of transactions having been announced and completed over the past 12 to 18 months,” said Halstead.
“In the pharmaceuticals sector in particular, there are acquisitions occurring on a worldwide basis as companies look to strengthen their exposure to generic pharmaceuticals companies.”
The purchase is also subject to shareholder agreement at a meeting due to be held in early December, and approval by the Foreign Investment Review Board.
Clayton Utz also advised the Mayne Group on its $3.5 billion demerger last year.