Israeli firm to buy top Bedford Co. employer: Barr Pharmaceuticals, whose Bedford County plant employees about 570 people, will be bought by Teva.

Jul 19, 2008 (The Roanoke Times - McClatchy-Tribune Information Services via COMTEX) -- TEVA | Quote | Chart | News | PowerRating -- Teva Pharmaceutical Industries, a company based in Israel, announced Friday that it has signed an agreement to buy Barr Pharmaceuticals, a New Jersey-based but global company whose Bedford County facility is the county's largest employer.

Barr's Bedford County operation, which has been described as one of the company's strongest performers, employs about 570 people.

The purchase price of Barr Pharmaceuticals will total about $7.46 billion, and Teva also will assume a net debt of about $1.5 billion. The deal is expected to close in late 2008.

Bill Hoy, spokesman for Bedford County, said early conversations with company officials suggest the acquisition should not affect the plant in Forest, which also serves as Barr's national distribution center.

Carol Cox, a Barr spokeswoman, said in an e-mail that until the acquisition is complete Barr will remain a separate company and that its local facilities will "operate in a business as usual mode."

Otherwise, she said it is too early in the process to speculate about how the integration of Teva and Barr will affect local operations companywide.

When one company acquires another in the same industry, operations often consolidate and individual plants sometimes close.

If that happened in Forest, Hoy said, "It would be major. But we do not anticipate that will happen."

In January, Barr announced plans to expand in Forest, adding both employees and about $6 million in new equipment.

Cox said the expansion will proceed.

"That project is ongoing and will continue as planned," Cox said.

The Forest plant manufactures a significant portion of Barr's product portfolio, including cardiovascular, anti-infective, psychotherapeutic and other drugs.

According to Teva Pharmaceuticals, Teva "is among the top 20 pharmaceutical companies in the world and is the leading generic pharmaceutical company." It develops, manufactures and markets generic drugs, other pharmaceuticals and pharmaceutical ingredients.

Barr Pharmaceuticals' market focus is similar, and it is said to be the fourth largest generic drug company worldwide. It operates in 30 countries.

A Teva news release touted several benefits of the acquisition. Among several other advantages cited, Teva said the acquisition will enhance its "leadership position in the U.S.," expand its reach in global growth markets and expand and diversify its product offerings.

Teva trades on the Nasdaq exchange and Barr on the New York Stock Exchange. On Friday, the price of Teva stock closed at $42.87, up $1.82. Barr stock closed at $63.43, up $6.26.

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