Mayne wins drug company with $1.25B bid

Mayne Nickless CEO Peter Smedley calls the revised offer 'highly attractive' to Faulding shareholders

SYDNEY, Australia (CNN) -- Australian logistics and healthcare group Mayne Nickless reached agreement with its takeover target F.H. Faulding Thursday after lifting its bid to $1.25 billion.

Under the complex deal, Mayne Nickless will break up and on-sell parts of Faulding, a pharmaceuticals company based in Adelaide, South Australia.

The revised offer gives the option of more cash to Faulding shareholders

Melbourne-based Mayne Nickless will on-sell Faulding's U.S.-based oral pharmaceuticals business to global drugs company Alpharma Inc for $660 million.

In addition, Mayne Nickless said it was talking to the Israeli generic drug maker and marketer Teva Pharmaceutical Industries about Teva buying Faulding's injectable pharmaceuticals business for $365 million.

New offer 'highly attractive'

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Mayne Nickless chief executive Peter Smedley said in a statement to the Australian Stock Exchange Thursday that the revised offer was a "highly attractive outcome" for Faulding shareholders.

The increased offer give shareholders three options, including an all-share alternative, plus cash and share alternatives.

Smedley said the offer was recommended by the Faulding board, which had agreed not to solicit any other offers or allow any other parties to conduct due diligence.

If the various arrangements go ahead, Mayne Nickless will acquire Faulding Healthcare at a value of about $433 million.

Faulding's Australian distribution business will fit with Mayne's network of private hospitals and logistics operations.

Parts of the deal are subject to approval from the Australian government under laws dealing with foreign acquisitions.