RE:Did CXR Overpay for Amdipharm Mercury...?
Excerpt from a National Post article by Damon Van Der Line dated September 10, 2015: "Since the deal has been announced there has been a lot of talk around what they paid and whether they overpaid for this and I think thats something that isnt knowable at this point in time, said Bruce Campbell of Stone Castle Investment Management Inc. He said that although there have been concerns over Concordias debt and high valuation, Valeant has been in more disconcerting situations during their recent acquisition history. At Valeant they had debt-to-EBITDA levels north of 7x at one point in time, and Concordias probably going to come in at 6x, he said. If you look at where theyve been from a valuation standpoint, Valeant is 13x right now but its been as high as 20x if you go back over the last couple years. Concordia is probably about 11.5x next year. Certainly youve seen richer valuations for Valeant and higher debt levels than Concordia has right now."