DuPont to sell pharmaceuticals to Bristol-Myers Squibb for $7.8 Billion
8 Jun 2001
DuPont today announced that it has reached a definitive agreement to sell the DuPont Pharmaceuticals Company to Bristol-Myers Squibb Company for $7.8 billion in cash.
DuPont said that it will retain its interest in Cozaar/Hyzaar, an antihypertensive drug developed by DuPont and Merck, and marketed by Merck. Closing of the sale is expected in the fourth quarter, subject to government approvals.
DuPont plans to use a portion of the proceeds to complete the current $2.5 billion share buyback program that was announced in July of last year. The remaining proceeds are expected to be used to reduce net debt and invest in growth opportunities aligned with the company's strategic direction.
In a related action, the DuPont Board of Directors authorised a new $2 billion share buyback program to begin once the current program is complete.
The transaction is expected to be accretive to earnings in 2002. The impact on current year earnings per share will depend on the final closing date and the timing and pace of the share buyback program implementation.
