Pfizer to Acquire Hospira for Approximately $17 Billion

Pfizer Inc. announced on February 5, 2015, that it had entered into a definitive agreement to acquire Hospira Inc. for approximately $17 billion. The transaction, valued at $90 per Hospira share, is set to significantly strengthen Pfizer's Global Established Pharmaceutical (GEP) business, particularly in sterile injectables and biosimilars.

Hospira is recognized as the world's leading provider of injectable drugs and infusion technologies, and also holds a strong position in biosimilars. This acquisition is anticipated to be immediately accretive to Pfizer's earnings, adding an estimated $0.10-$0.12 per share in the first full year post-closing.

The combined entity aims to establish a leading global sterile injectables business by merging Hospira's generic sterile injectables portfolio, including oncology products, with Pfizer's branded sterile injectables. Pfizer intends to leverage its global reach to expand the market presence of Hospira's products beyond the United States, targeting Europe and emerging markets.

Pfizer projects that the acquisition will yield approximately $800 million in annual cost savings by 2018. The company plans to finance the transaction through a combination of existing cash and new debt. The deal is subject to customary closing conditions, including regulatory approvals and Hospira shareholder consent, with completion expected in the latter half of 2015.