Jazz Pharmaceuticals’ $7.2 Billion Acquisition of GW Pharmaceuticals

Wachtell, Lipton, Rosen & Katz, Macfarlanes LLP and Arthur Cox LLP advised Jazz Pharmaceuticals, while Cravath, Swaine & Moore LLP and Slaughter and May advised GW Pharmaceuticals plc on the deal. Skadden, Arps, Slate, Meagher & Flom LLP advised Goldman Sachs & Co. LLC and Centerview Partners LLC as financial advisors to GW Pharmaceuticals.

Jazz Pharmaceuticals plc (Nasdaq: JAZZ) and GW Pharmaceuticals plc (Nasdaq: GWPH) have entered into a definitive agreement for Jazz to acquire GW for $220.00 per American Depositary Share (ADS), in the form of $200.00 in cash and $20.00 in Jazz ordinary shares, for a total consideration of $7.2 billion, or $6.7 billion net of GW cash. The transaction, which has been unanimously approved by the Boards of Directors of both companies, is expected to close in the second quarter of 2021.

Upon close of the transaction, the combined company will be a leader in neuroscience with a global commercial and operational footprint well positioned to maximize the value of its diversified portfolio.

The cash portion of the transaction consideration is expected to be funded through a combination of cash on hand and debt financing. Jazz has obtained fully committed debt financing from BofA Securities and J.P. Morgan Securities LLC. The financing includes a meaningful portion of pre-payable debt, in line with Jazz’s commitment to rapid deleveraging.

Evercore and Guggenheim are serving as lead financial advisors to Jazz Pharmaceuticals, and Evercore is acting as debt advisor. Jazz Pharmaceuticals also received financial advice from BofA Securities and J.P. Morgan Securities LLC. Goldman Sachs & Co. LLC and Centerview Partners LLC are serving as financial advisors to GW Pharmaceuticals plc.

Jazz Pharmaceuticals plc is a global biopharmaceutical company dedicated to developing and commercializing life-changing medicines that transform the lives of patients with serious diseases — often with limited or no options.

Founded in 1998, GW is a biopharmaceutical company focused on discovering, developing and commercializing novel therapeutics from its proprietary cannabinoid product platform in a broad range of disease areas.

The Cravath team for GW was led by partners George F. Schoen (Picture), Damien R. Zoubek and Jenny Hochenberg and included associates William F. Roegge, Dana Leshem and Fay E. Krewer on M&A matters; partner Jonathan J. Katz and associates Daniel P. Herrmann and Dixing Tang on executive compensation and benefits matters; partners Stephen M. Kessing, Michael E. Mariani and Matthew M. Kelly and associates Joseph A. Marshall and Carol S. Lin on financing matters; partner J. Leonard Teti II and associate Andrew T. Davis on tax matters; partner David J. Kappos and associate Daniel J. Etcovitch on intellectual property matters; senior attorney Annmarie M. Terraciano on environmental matters; and practice area attorney Brian M. Budnick on real estate matters. Armin Hoss also worked on M&A matters; Sonia Katharani‑Khan also worked on tax matters; Laura S. Lee also worked on executive compensation and benefits matters; and Pedraam Mirzanian also worked on intellectual property matters.

The Macfarlanes team was led by corporate and M&A partners Harry Coghill and Charles Martin, with assistance from senior solicitor Thomas French and solicitor Jon Webb. Tax expertise was provided by partners Ashley Greenbank and Peter Abbott, together with senior solicitor Laura Foley, with advice on share incentive arrangements provided by partner Rob Collard and senior counsel Rasmus Berglund. Competition advice was provided by partner Malcolm Walton and solicitor Jonathan Morgan. Advice on the financing aspects came from partner Kirstie Hutchinson and senior solicitor Christopher Page. Employment law advice came from partner Hayley Robinson and senior lawyer Chris Boyle.

The Skadden team advising Goldman Sachs & Co. LLC and Centerview Partners LLC included M&A partners Graham Robinson (Boston) and Christopher Barlow(New York), and associate Sydney Gaylin (Boston).

Slaughter and May’s team advised GW Pharmaceuticals plc with Paul Mudie, Partner, Andy Ryde, Partner, Richard Hilton, Associate, Phil Linnard, Partner, Ian Brown, Senior Counsel, Lucy Duane, Associate, Ross Neill, Associate, Mike Lane, Partner, Laura Ridley, Associate, Philippe Chappatte, Partner, Lorna Nsoatabe, Associate.

The Arthur Cox team was led by Michael Coyle (Corporate and M&A), Fintan Clancy (Tax) and Stephen Ranalow (Corporate and M&A) and included Kylie Dollard, Niamh O’Toole, Sinéad McDonagh and Andrew Hughes (Corporate and M&A) and Elaine Mooney and Dearbhla Ní Fhloinn (Tax).

Wachtell, Lipton, Rosen & Katz advised Jazz Pharmaceuticals with a team led by Mark Gordon and Victor Goldfeld.

Involved fees earner: Fintan Clancy – Arthur Cox; Michael Coyle – Arthur Cox; Kylie Dollard – Arthur Cox; Sinéad McDonagh – Arthur Cox; Elaine Mooney – Arthur Cox; Dearbhla Ní Fhloinn – Arthur Cox; Niamh O’Toole – Arthur Cox; Stephen Ranalow – Arthur Cox; Brian Budnick – Cravath Swaine & Moore; Andrew Davis – Cravath Swaine & Moore; Daniel Etcovitch – Cravath Swaine & Moore; Daniel Herrmann – Cravath Swaine & Moore; Jenny Hochenberg – Cravath Swaine & Moore; Armin Hoss – Cravath Swaine & Moore; David Kappos – Cravath Swaine & Moore; Sonia Katharani-Khan – Cravath Swaine & Moore; Jonathan Katz – Cravath Swaine & Moore; Matthew Kelly – Cravath Swaine & Moore; Stephen Kessing – Cravath Swaine & Moore; Fay Krewer – Cravath Swaine & Moore; Dana Leshem – Cravath Swaine & Moore; Michael Mariani – Cravath Swaine & Moore; Joseph Marshall – Cravath Swaine & Moore; William Roegge – Cravath Swaine & Moore; George Schoen – Cravath Swaine & Moore; Dixing Tang – Cravath Swaine & Moore; Annmarie Terraciano – Cravath Swaine & Moore; J. Leonard Teti II – Cravath Swaine & Moore; Damien Zoubek – Cravath Swaine & Moore; Peter Abbott – Macfarlanes LLP; Rasmus Berglund – Macfarlanes LLP; Chris Boyle – Macfarlanes LLP; Harry Coghill – Macfarlanes LLP; Robert Collard – Macfarlanes LLP; Laura Foley – Macfarlanes LLP; Thomas French – Macfarlanes LLP; Ashley Greenbank – Macfarlanes LLP; Kirstie Hutchinson – Macfarlanes LLP; Charles Martin – Macfarlanes LLP; Jonathan Morgan – Macfarlanes LLP; Hayley Robinson – Macfarlanes LLP; Malcolm Walton – Macfarlanes LLP; Jonathan Webb – Macfarlanes LLP; Christopher Barlow – Skadden Arps Slate Meager & Flom; Sydney Gaylin – Skadden Arps Slate Meager & Flom; Graham Robinson – Skadden Arps Slate Meager & Flom; Ian Brown – Slaughter and May; Philippe Chappatte – Slaughter and May; Lucy Duane – Slaughter and May; Richard Hilton – Slaughter and May; Mike Lane – Slaughter and May; Phil Linnard – Slaughter and May; Paul Mudie – Slaughter and May; Ross Neill – Slaughter and May; Lorna Nsoatabe – Slaughter and May; Laura Ridley – Slaughter and May; Andy Ryde – Slaughter and May; Victor Goldfeld – Wachtell, Lipton, Rosen & Katz; Mark Gordon – Wachtell, Lipton, Rosen & Katz;

Law Firms: Arthur Cox; Cravath Swaine & Moore; Macfarlanes LLP; Skadden Arps Slate Meager & Flom; Slaughter and May; Wachtell, Lipton, Rosen & Katz;

Clients: Centerview Partners; Goldman Sachs & Co.; GW Pharmaceuticals; Jazz Pharmaceuticals;

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Author: Ambrogio Visconti