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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Post by greatplayon Sep 19, 2016 1:49pm
267 Views
Post# 25252540

Concordia doesn't need to pay for Amco, because

Concordia doesn't need to pay for Amco, becauseConcordia doesn't need to pay for Amco, if condition is not met (below)

Concordia gross profit declined since acquisition from Amco's products... so it looks like $220MLN that everybody was talking as a big issue, is not an issue at all... no need to pay them at all.

https://concordiarx.com/concordia-healthcare-completes-amco-acquisition/

Transaction Details

Concordia financed the cash portion of the purchase price for AMCo through a combination of US$2.8 billion of debt financings, gross proceeds of US$520 million raised from the Company’s public equity offering, and cash on hand. The capital was also utilized to refinance certain Concordia and AMCo debt. An earn-out payment of up toUS$220 million may be payable to the sellers of AMCo in 2016 should the AMCo group of companies achieve certain levels of gross profit over a period of 12 months fromOctober 1, 2015. This payment will not be made should the AMCo group not achieve these targets.

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