Watson Pharmaceuticals Acquires Arrow Group
June 17, 2009 by Mark Ellis
Filed under Business
You may not have heard of either company if you do not keep up with the generic drug market, but Watson Pharmaceuticals has shelled out $1.75 billion for the Arrow Group. This will allow Watson to fulfill its plan of expanding internationally once it had taken control of its rival and formed a company large enough to handle such a move.
The takeover is significant for Watson, which will gain a company that dealt with $647 million in revenue last year. It will also allow Watson to tap into the Arrow Groups markets in over twenty countries, expediting its plan to go international by supplying an existing customer base.
The deal will be complete by the second half of this year and Watson expects to see an increase in earnings right away. Watson will pay $1.05 billion upfront and the rest of the payment will be issued in stocks.
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