Bangalore: Mylan has signed a definitive agreement with Strides Arcolab to acquire its generic injectable products unit, Agila Specialties, for $1.6 billion in cash. The acquisition will significantly expand and strengthen Mylan's global injectables platform and facilitate its entry into new high-growth geographic markets.

The acquisition is expected to be immediately accretive to Mylan's adjusted diluted earnings per share following closing. The transaction is expected to close in the fourth quarter of 2013, subject to regulatory approvals and certain closing conditions.

The agreement also provides for up to an additional $250 million in potential payments subject to the satisfaction of certain conditions by Strides. Mylan is not assuming any outstanding debt or acquiring the business's cash as part of the transaction. Mylan has obtained a commitment letter from Morgan Stanley for a new $1 billion senior unsecured bridge term loan in connection with the planned acquisition. While Morgan Stanley is serving as financial advisor to Mylan, Skadden, Arps, Slate, Meagher and Flom is acting as overall legal advisor, assisted by Slaughter and May and Platinum Partners.

Agila, headquartered in Bangalore, India, will bring Mylan a broad product portfolio of more than 300 filings approved globally and marketed through a network covering 70 countries, including 61 abbreviated new drug applications (ANDAs) approved by the US FDA.

Agila has a global pipeline of approximately 350 filings pending approval, including 122 ANDAs pending FDA approval. Agila's capabilities complement Mylan's existing injectables platform of more than 500 products marketed globally, including 55 ANDAs, and its high quality sterile manufacturing facilities in Ireland and India.