In a move that is set to transform its position in the US generics market, Hikma Pharmaceuticals has announced that it is acquiring Roxane Laboratories for JD1.88 billion ($2.65 billion) in cash and stock.

Hikma, which was one of a number of companies to take part in the bid, will pay JD840 million (US$1.18 billion) in cash and will issue 40 million new Hikma shares to Boehringer, the German owner of Roxane, representing approximately 16.71 percent of Hikma’s issued share capital. The company also agreed to make cash payments of up to JD88.5 million ($125 million), subject to the achievement of certain performance milestones.

“This transaction has significant strategic value for us, transforming our position and scale in the US generics market,” said Said Darwazah, CEO of Hikma Pharmaceuticals.

“Roxane’s impressive portfolio, attractive pipeline, and R&D expertise, focusing on higher value, niche and differentiated products, will create a platform for sustainable long-term growth,” said Darwazah, adding that the acquisition will also significantly expand his company’s manufacturing capacity and technological capabilities.

Hikma was founded in Amman by Samih Darwazah in 1978 and has a mammoth market capitalization of almost JD5.3 billion, with revenues that reached just over JD1 billion last year. Hikma is also the first Jordanian pharmaceutical company to get listed on the FTSE 100 in the London Stock Exchange.

Last summer, Hikma also acquired Ohio-based Bedford Laboratories from Boehringer for JD235 million.