Teva Pharmaceutical Industries will acquire 57% of privately held Taiyo Pharmaceutical Industry for $460 million in cash and will make an offer to buy the remaining shares of the Japanese company.

The deal gives Taiyo an enterprise value of $1.3 billion and is expected to be accretive to GAAP earnings within four quarters after closing, Teva said on Monday.

Taiyo is the third largest generic pharmaceutical company in Japan with sales of $530 million in 2010. It has over 550 generic drugs in a variety of therapeutic areas.

"This acquisition will enable Teva to deliver on our strategic objective of becoming a leading player in the fast-growing Japanese generics market," Teva President and Chief Executive Shlomo Yanai said.

"In fact, we now expect to reach our 2015 target of $1 billion in sales in Japan ahead of schedule."

The transaction will be funded through cash on hand and bank debt. Teva expects to complete the transaction by the end of the third quarter.