Baxter Travenol Laboratories, in a continuing realignment of operations following a merger last year with American Hospital Supply Corp., has agreed to sell its Flint drug division to a British pharmaceutical company for about $555 million.
Boots America Inc., a subsidiary of Boots Co. PLC, said Wednesday that it will pay for the acquisition by offering 184.2 million new shares. Boots, headquartered in Nottingham, England, said that if the sales of Flint's products reach certain undisclosed goals, it may pay up to $45 million more in cash over the next four years.
Flint manufactures and markets drugs to physicians nationwide. Its best-known product, Synthroidr, is used for treating thyroid hormone deficiencies.
The sale completes a strategic realignment that Baxter Travenol announced in April. Last month, Baxter agreed to sell American Critical Care to Du Pont for $425 million. Critical Care develops, manufactures and distributes drugs, primarily for critical-care and cardiovascular medicine.
As part of the re-evaluation of operations, Baxter Travenol has said it will focus its resources on health-care products and services. The company also said the proceeds from the sales would be used to repay debt incurred mainly in its $3.8-billion merger with American Hospital Supply. Proceeds also will be used for capital expenses and general corporate purposes.
The agreement is subject to the approval of Boots' shareholders and government regulators. Closing is expected within 30 days.