Target: Par Pharmaceutical
Buyer: Private equity consortium
Price: $1.9 billion
Closed: Sept. 28, 2012
This deal started when activist investor Ralph Whitworth decided the generics maker was worth a lot more than its valuation indicated. His Relational Investors increased its stake in Par, then told it to park itself on a corner with a For Sale sign in the window.
The company quickly picked up an offer. The Texas-based private equity group TPG agreed to pay $50 per share, a 37% premium, putting a total value of $1.9 billion on the company. Par wanted a couple of months to see if other buyers would check it out, and about 40 kicked the tires of the generics maker. Three even signed confidentiality agreements to get a closer look. But in the end, no auction materialized. TPG walked away with Par and Whitworth with some extra cash.