Cleary Gottlieb is representing GlaxoSmithKline plc on the U.S. corporate and antitrust aspects of its recently announced $1.4 billion acquisition of Canada’s ID Biomedical Corporation, an integrated biotechnology company. The transaction is expected to close by early 2006.
Under the terms of the deal, ID Biomedical would become a GSK subsidiary, and the ID Biomedical shareholders would receive CDN$ 35 per share (approximately CDN$1.7 billion/U.S. $1.4 billion). GSK has also agreed to loan ID Biomedical up to $120 million to repay term debt and finance its cash requirements to the anticipated closing date.
ID Biomedical develops and manufactures vaccines, including an influenza vaccine that is presently sold in Canada. GSK is one of the world’s largest pharmaceutical and health care companies and is also a manufacturer of vaccines.