Fresenius SE. said it bought APP Pharmaceuticals, a U.S.-based supplier of generic intravenous drugs, for up to $29 per share in cash to give its infusion therapy subsidiary Kabi better access to U.S. markets.

Fresenius agreed to pay $23 in cash plus a variable component of up to $6 if APP exceeds a cumulative adjusted EBITDA target for 2008 to 2010, The German health care company said in statement.

The initial cash component values APP at about $3.7 billion, Fresenius said, adding that the variable component is delivered in the form of a 'registered and tradable Contingent Value Right' (CVR).

The company said that it expects the acquisition to raise earnings per share (EPS) from the second year, adding that the deal will not have an effect on EPS in the first year.

APP focuses on intravenous generics, including cancer drugs, pain killers and anaesthesia, for hospitals in the United States and Canada. The company employs around 1,400 people and operates production facilities in Illinois, New York and Puerto Rico, Fresenius said.

Through the acquisition, 'Fresenius Kabi enters the U.S. market and achieves a leading position in the global I.V. generics market. In 2007, APP posted sales of $647 million and an adjusted EBITDA of $253 million. The Nasdaq-listed company's latest guidance for 2008 sees sales in a range of $730 million to $750 million and an adjusted EBITDA in a range of $285 million to $300 million.