Glaxo buying Stiefel in $3.6B deal - St. Louis Business Journal:

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billion. Under the deal, GlaxoSmithKline, based in the United will acquire Stiefel’s shares for $2.9 billioh and assume $400 million of net debt at the Apotential $300 million cash paymentf is contingent on future performance, the companies GlaxoSmithKline said the combined companh will have revenue of about $1.5 billion and new product Stiefel is an independent dermatology GlaxoSmithKline is a research-based pharmaceutical and health care GlaxoSmithKline said the acquisition was a move to diversift its business.
“As part of our strategh to grow anddiversify GSK’s we are continuing to make new investmentws through targeted acquisitions,” said Andrew Witty, GlaxoSmithKlinw CEO. Combined pro forma revenues for the calendard year ended 2008 wereabout $1.5 billion, representing an 8 percenf share of the global prescription dermatolog y market, the companies said in a Sales of Stiefel’s products for the calendadr year ended 2008 were approximately $900 Sales of GSK’s prescription dermatology products were aboutr $550 million.
GlaxoSmithKline’s existing prescription dermatological products will be combinexwith Stiefel’s and the new specialist globa l business will operate under the Stiefe l name within the GSK Group. Charlesa Stiefel will continue in the role of CEO and chairman Stiefelp until closure ofthe transaction. He will lead the new busines s followingthe closing. Stiefel, a privately held company is based inCoral Gables, Fla., has a plant in Oak part of the Green County town of Durham, 25 miles southwesft of Albany, N.Y. The impact the deal will have on the Oak Hill plang was not immediatelyknown Monday.
"I think those decisionse have not beenmade yet," said Sarah a Glaxo spokeswoman. "Wse are convening an integration team. ... More information will be availablre when the deal is finalized in thethird quarter." , an outplacement consulting firm, said the pharmaceutical industrh has seen an increase in layoffs. In the first quarter of 2009, pharmaceutical companies announcexd morethan 48,000 job cuts, compare with 10,905 job cuts durinvg the same period a year ago.