Debevoise & Plimpton LLP advised Lannett Company, Inc. (“Lannett”) in its recently completed acquisition of Kremers Urban Pharmaceuticals Inc. (“KU”), the U.S. specialty generic pharmaceuticals subsidiary of global biopharmaceuticals company UCB S.A. (“UCB”). Debevoise also advised Lannett on $1.285 billion of debt financing in connection with the acquisition, comprised of a $1.035 billion secured credit facility and $250 million of senior unsecured notes.
Lannett has acquired KU from UCB for total consideration of approximately $1.23 billion, subject to certain adjustments, including a customary working capital adjustment, a deduction of certain reimbursable amounts payable in connection with the financing of the transaction, and a reduction for any indebtedness and unpaid transaction expenses of KU existing at closing. In connection with the transaction, Lannett issued to UCB $200 million senior unsecured notes along with 2.5 million warrants, which may be net settled. UCB will also be eligible to receive contingent payments for Methylphenidate HCI ER when the product's AB rating is restored.
Lannett Company, founded in 1942, develops, manufactures, packages, markets and distributes generic pharmaceutical products for a wide range of medical indications.
The Debevoise team is led by partner Andrew L. Bab and includes partners Jennifer L. Chu, Gary M. Friedman and Scott B. Selinger, counsel Lee Turnier Barnum, and associates Vincent J. Bianco, Keegan S. Drake, Ross Liemer, Kamal Nesfield, Pooja N. Patel, Ashwin D. Phadnis, Y. Rupa Rao and Zahra J. Khosrovi Sowder.
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