Watson Pharmaceuticals will purchase Greek generic drug developer Specifar in a deal worth $562m.

The acquisition will immediately add to Watson’s 2011 earnings and will help the company expand into the European market, and build on the company’s 2009 purchase of Arrow Group .

Watson CEO Paul Bisaro told Reuters: “It provides us with additional commercial capacity for our European business. We got the beachhead established but now we needed the firepower to go out and expand, and that’s what this does.”

Specifar currently has 400 marketing authorisations licensed to third parties and has approximately $120m in annual sales.