Teva to receive $675 million cash proceeds to progress repayment of term loan debt
Teva Pharmaceutical Industries Ltd., (NYSE and TASE: TEVA) today announced it has completed the sale of Plan B One-Step® and Teva’s value brands of emergency contraception to Foundation Consumer Healthcare in a $675 million cash transaction.
“Today’s announcement, coupled with the recent completion of the sale of PARAGARD®, exhibits Teva’s commitment to divest non-core businesses to ensure that we are even more focused and efficient in this rapidly changing and highly-competitive environment,” stated Michael McClellan, interim CFO of Teva. “Teva is extremely pleased to complete the sale of Plan B One-Step® and value brands of emergency contraception, which brings a significant influx of cash into the organization to further progress our ability to repay term loan debt while also providing a clear path forward for these important emergency contraception products to continue to be available.”
Teva continues to progress and actively pursue additional divestiture opportunities, including the previously announced agreement with CVC Capital Partners for the sale of the remaining assets of its global Women's Health business. Teva expects to generate at least $2.3 billion in total proceeds from the sale of these businesses, as well as additional asset sales to be executed by year end 2017.
Morgan Stanley acted as financial advisor to Teva, Ernst & Young served as accounting advisor and Goodwin Procter is Teva’s legal counsel for this transaction.
Foundation Consumer Healthcare is owned by affiliates of Juggernaut Capital Partners and Kelso & Company. Jefferies LLC, Sawaya Segalas & Co., LLC and Barclays acted as financial advisors to Foundation Consumer Healthcare and Robinson Bradshaw are Foundation Consumer Healthcare’s legal counsel for the transaction. Skadden, Arps, Slate, Meagher & Flom LLP acted as legal adviser to Kelso & Company.
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a leading global pharmaceutical company that delivers high-quality, patient-centric healthcare solutions used by approximately 200 million patients in over 60 markets every day. Headquartered in Israel, Teva is the world’s largest generic medicines producer, leveraging its portfolio of more than 1,800 molecules to produce a wide range of generic products in nearly every therapeutic area. In specialty medicines, Teva has the world-leading innovative treatment for multiple sclerosis as well as late-stage development programs for other disorders of the central nervous system, including movement disorders, migraine, pain and neurodegenerative conditions, as well as a broad portfolio of respiratory products. Teva is leveraging its generics and specialty capabilities in order to seek new ways of addressing unmet patient needs by combining drug development with devices, services and technologies. Teva's net revenues in 2016 were $21.9 billion. For more information, visit www.tevapharm.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the completion of the Plan B One-Step® divestiture which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to:
Teva Pharmaceutical Industries Ltd.
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