Actavis Group, the international generic pharmaceuticals company, has announced that it has agreed to acquire the human generics business of the US listed pharmaceutical company Alpharma Inc. for a total consideration of $810 million in cash.

The deal brings together two premier generic pharmaceutical businesses with complementary strengths in Europe and the US and represents a significant milestone in Actavis' goal to become one of the leading global companies within the sector.

Following the acquisition Actavis will be among the five largest companies in generic pharmaceuticals worldwide, in terms of revenue. The enlarged group will have around 10,000 employees in 32 countries.

Completion of the acquisition is expected to take place in December. The acquisition is subject to the regulatory approval of the US competition authorities.

Actavis will gain a local presence for its own-label products in the largest European pharmaceutical markets - Germany and the UK - as well as enhancing its position in Scandinavia, the Netherlands, Portugal, and other European countries. Actavis will also gain access to the marketing and distribution network of Alpharma in 11 countries.

The enlarged Group will have one of the broadest portfolios in the generics sector with over 600 products on the market. Alpharma's strong liquid product portfolio complements Actavis' strengths in oral solid-dose products and there is minimal overlap in both pipeline and portfolios for the US market.

Founded in 1903 in Norway, Alpharma develops, manufactures and sells a broad range of solid-dose, liquid and topical dosage forms of generic pharmaceutical products. The business employs approximately 2,800 people with its own operations in 11 countries around the world. The company is the eight largest generic pharmaceutical company in the US, the fourth largest company in the UK and has a strong position in Scandinavia, the Netherlands and Portugal. In addition, the business has a presence in China and Indonesia.