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Concordia Healthcare announces successful completion of Donnatal Acquisition

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Concordia Healthcare Corp.

On May 15, 2014, Concordia Healthcare Corp. (“Concordia” or the “Company”) announced the completion of the acquisition of Donnatal, from a privately held specialty pharmaceutical company. During 2013, Donnatal generated revenues of US$49.1 million and EBITDA1 of US$40.2 million. Concordia acquired Donnatal for US$200 million in cash and an aggregate of 4,605,833 common shares of Concordia, representing approximately 16.17% of the Company's outstanding common shares on a non-diluted basis (approximately 14.96% on a fully-diluted basis) after giving effect to the acquisition. Management paid for the cash component of the acquisition through a combination of available cash and debt financing. Accordingly, the Company entered into a secured credit facility having a principal amount of up to US$195 million, consisting of a US$170 million term loan and a US$25 million operating line with GE Capital, Healthcare Financial Services and a syndicate of lenders. The credit facility is secured by the assets of the Company and the assets of its material subsidiaries. Fasken Martineau’s Rubin Rapuch, Jon Holmstrom, John Sabetti, Louise Kennedy and Francesco Tallarico advised Concordia with respect to the acquisition and financing.



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