FTSE 100-listed Hikma Pharmaceuticals PLC on Tuesday said it has agreed a USD2.65 billion deal to acquire Roxane Laboratories Inc and Boehringer Ingelheim Roxane Inc from Boehringer Ingelheim, the German pharmaceutical company.

Under the terms of the proposed deal, Hikma will pay $1.18 billion in cash and issue 40 million new shares to Boehringer, in exchange for Roxane Laboratories Inc., which includes development, manufacturing and marketing operations.

Hikma has also agreed to make contingent cash payments of up to $125 million, subject to the achievement of certain performance milestones.

Roxane is a U.S. specialty generic drugs company.

“We are not in the race to be number three at the moment”, Darwazah said.

This is not the first time Hikma has struck a deal with Boehringer.

The acquisition will transform Hikma’s position in the US generics market, establishing it as the sixth largest company by revenue. The company also bought a flailing Ben Venue plant in a separate deal, and has since gutted the facility and used equipment in other plants. Last year, Hikma’s non-branded business brought in $215 million, or 15% of its revenues.

Analysts at Shore Capital said: “From a period where we thought that Hikma may have thought of divesting the non-injectables business, it is clear that management has a long-term commitment, aided substantially by this acquisition”. And Roxane’s Columbus, OH, manufacturing plant will also give Hikma the tools it needs for non-injectables expansion, allowing the company to make solids, liquids, nasal sprays and dry powder inhalers. Max Herrmann, of Stifel, described Roxane’s manufacturing facility as “best-in-class”.

Hikma’s ambitions for Roxane go beyond an initial trans-Atlantic splash.

Founded in 1885 as The Columbus Pharmaceutical Co., Roxane was renamed upon being acquired by Boehringer Ingelheim in 1978, and has grown since then to 1,360 employees.

The deal comes one day after Israeli pharmaceutical giant Teva snapped up the generic drugs business of Allergan (NYSE: AGN – news) for $40.5 billion, consolidating its position as a world leader in generics.

Darwazah ruled out any more big acquisitions, saying the company would focus instead on adding products and technology.