The Commercial Court has approved the €6.27 billion acquisition of the Elan pharmaceutical group by US firm Perrigo.
Mr Justice Peter Kelly made the relevant orders yesterday on the application of Paul Sreenan SC, for Elan. The deal is expected to be closed on December 18th.
The acquisition, announced in July, involves the US generic drugmaker paying $8.6 billion (€6.27 billion) for Elan in a deal giving it royalty rights plus lower taxes as a result of being domiciled in Ireland.
Elan’s petition said it was estimated about $22.2 million may be payable to seven executives of the company upon termination of employment. Another 14 employees may receive bonus payments not exceeding US$3.3 million arising from their role in the sale.
Perrigo’s proposal involved acquiring all Elan’s outstanding shares at $16.50 per share.
'Reduction in headcount'
Perrigo will begin "a comprehensive evaluation" of the enlarged group's operations. It expects that there will be "an overall reduction in headcount". Elan has 73 employees, 35 of them in Ireland, plus six fixed-term contractors.
