In a bid to expand its speciality branded drug portfolio, Actavis has agreed to buy Warner Chilcott for approximately US$8.5 B, including the assumption of US$3.4 B in net debt. The new company, which will be led by the current Actavis management team, is expected to generate annual revenue of approximately US$11 B. A key driver of the deal is the favourable tax environment in Ireland where Warner Chilcott is based. Actavis was formed as a result of Watson Pharmaceuticals’ €4.25 B (US$5.6 B) acquisition of the Switzerland-based generics company of the same name in October 2012.