On Thursday morning, Pfizer (PFE ) announced that it has entered into a definitive merger agreement with Hospira, which will see Pfizer acquire Hospira in an all cash deal.
Pfizer will pay $90 per share for Hospira, making for an overall enterprise value of $17 billion. The deal has been approved by the boards of directors from both companies.
Pfizer’s chairman and CEO Ian Read had the following comments: “The proposed acquisition of Hospira demonstrates our commitment to prudently deploy capital to create shareholder value and deliver incremental revenue and EPS growth in the near-term. In addition, Hospira’s business aligns well with our new commercial structure and is an excellent strategic fit for our Global Established Pharmaceutical business, which will benefit from a significantly enhanced product portfolio in growing markets. Coupled with Pfizer’s global reach, Hospira is expected to drive greater sustainability for our Global Established Pharmaceutical business over the long term.”
The deal will have to be approved by regulators and is expected to close in the second half of 2015.
PFE stock was up 98 cents, or 3.06%, in pre-market trading.