German Drug-Maker To Buy Illinois-based APP Pharmaceuticals For $3.7B

July 7, 2008 12:44 p.m. EST

New York (ANH) -- German-based Fresnius SE reported Monday that it will buy U.S. generic drug-maker APP Pharmaceuticals for $3.7 billion in a deal that will give it more opportunities for growth in the North American market for drugs administered intravenously.

Fresnius, based in Frankfurt, Germany, will pay $23 a share for the Schaumburg, Ill.-based APP Pharmaceuticals.

APP will merge with the U.S. subsidiary of Fresnius Kabi, according to APP founder Dr. Patrick Soon-Shiong, who holds more than 80 percent of APP's stock.

APP employs 1,400 and operates in New York, Puerto Rico, Toronto and at the Illinois plant. Its drug portfolio includes more than 100 products used for oncology, intensive care and anesthesia, along with fighting infections.

APP last year reported a pretax profit of $253 million on sales of $647 million.