Perrigo is expanding its reach into Europe through a $3.1 billion acquisition of one of the continent’s biggest suppliers of non-prescription medicines.
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Perrigo Co. Plc said Thursday that it will pay a combination of cash and stock to acquire Belgium’s Omega Pharma NV. The deal is worth about 3.58 billion euros, or $4.48 billion, when counting debt.
Perrigo Chairman, President and CEO Joseph C. Papa said, “The combination of these two great companies accelerates Perrigo’s international growth strategy, substantially diversifies our business streams and establishes a durable leadership position in the European OTC marketplace. We believe this strategic transaction will enhance shareholder value by further strengthening our industry-leading revenue and cash flow growth profile and by expanding market opportunities. Omega brings a leading OTC product portfolio, European capabilities, and a highly experienced management team to support Perrigo’s continued growth.”
Papa continued, “Our strong financial performance and operational structure have enabled the continued growth and globalization of our business model with Ireland as our gateway for this expansion. Together, our combined company will have an even larger product portfolio, broader geographic reach, and enhanced scale.”
Omega’s portfolio includes about 2, 000 products, including many cough and cold, skincare and pain relief treatments. It has a commercial presence in 35 countries, and it brought in about $1.6 billion in revenue during the 12-month period that ended Sept. 30.
Perrigo also makes non-prescription or over-the-counter medications. It moved its headquarters to Dublin from Michigan after agreeing last year to buy Irish drugmaker Elan for $8.6 billion.
U.S.-traded shares of Perrigo fell $1.49 to $157.01 Thursday before markets opened. The stock has climbed about 3.3 percent so far this year.