Perrigo has announced that it agrees to acquire a portfolio of popular over-the-counter (“OTC”) brands from GlaxoSmithKline Consumer Healthcare. The transaction is in line with GSK’s commitments to the European Commission as well as from other regulators to divest these businesses for the creation of a consumer health joint venture between GSK and Novartis International AG (“Novartis”). According to the transaction, Perrigo will acquire the following assets; this is an all-cash transaction and the purchase price remains to be undisclosed till this day.
NiQuitin, GSK’s nicotine replacement therapy (“NRT”) business in the European Economic Area (“EEA”) and Brazil is a part of this transaction as well as Novartis’s legacy Australian NRT business, including the Nicotinell brand. Perrigo is also acquiring several assorted OTC brands such as Coldrex, a cold and flu treatment brand known across the EEA, and Panodil a pain relief medication, Nezeril a medication for nasal decongestion and Nasin which is also a nasal decongestant in Sweden. Finally, Perrigo has also acquired Novartis’s legacy cold sore management products which are primarily marketed in the EEA under the brands Vectavir, Pencivir, Fenivir, Fenlips and Vectatone.
Joseph C. Papa, Perrigo Chairman, President and CEO, commented on the transaction with GlaxoSmithKline, “This acquisition demonstrates Perrigo’s ability to execute on our ‘Base Plus Plus Plus’ strategy, in which we make selective, accretive transactions to expand our durable base business. We are building on the global platform we established with the Omega Pharma acquisition to capture an even greater share of the $30 billion European OTC market opportunity with several well-established, complementary brands that bolster our OTC product portfolio. We are committed to making investments in these brands to grow their market positions in key geographies, by following Omega Pharma’s proven approach to brand building.
“Perrigo is uniquely positioned to maximize the potential of these brands by leveraging Omega Pharma’s leading European commercial infrastructure, pan-European distribution network, strong brand-building capabilities, and exceptional management team. This announcement comes on the heels of our recent acquisition of European OTC dermatological product, Vitasil, which recently closed. With our global platform in place and our robust balance sheet, we are ideally positioned to execute immediately accretive deals, such as this one, that will have a multiplier effect on our growth.”
The acquisition is expected to be immediately accretive to Perrigo’s calendar 2015 adjusted earnings per share, excluding estimated intangible amortization and transaction-related costs. The Boards of Directors of Perrigo and GSK has unanimously approved the transaction and is expected to close in the third quarter of 2015, pending approval by the European Commission, the Australian Competition and Consumer Commission, and Brazil’s Council for Economic Defense, as well as the satisfaction of customary closing conditions.
About Perrigo
Perrigo Company plc is an Irish international manufacturer of private label OTC medications. The company’s shares are traded on the NYSE and the Tel Aviv Stock Exchange. As a result of the merger with Agis Industries the company is a constituent of the TA – 25 Index. Perrigo is the only non-Israeli company on the TA-25.
Perrigo Company plc, through its wholly owned subsidiaries, manufactures and sells consumer healthcare products, generic prescription drugs, active pharmaceutical ingredients and consumer products primarily in the United States, Australia, Israel, India, Mexico and in European countries. Perrigo stock market evolution: http://finance.yahoo.com/q?s=PRGO
About Joseph C. Papa
Joseph C. Papa is the President, Chief Executive Officer and Chairman of Perrigo Company plc. He joined the Company in October 2006 as President and Chief Executive Officer. Additionally, Mr. Papa has held management positions at DuPont Pharmaceuticals, Pharmacia Corporation, G.D. Searle & Company and Novartis AG. Mr. Papa is a director of Smith & Nephew, a developer of advanced orthopedic medical devices
About GlaxoSmithKline
GlaxoSmithKline plc (GSK) is a British multinational pharmaceutical company with headquarters in Brentford, London. GSK is the world’s sixth-largest pharmaceutical company in 2014, after its competitors Pfizer, Novartis, Sanofi, Hoffmann – La Roche and Merck. It was established in 2000 by a merger of Glaxo Wellcome (formed from Glaxo’s 1995 acquisition of Burroughs Wellcome) and SmithKline Beecham (from the 1989 merger of Beecham Group and SmithKline Beckman Corporation.
GSK has a variety of products for major disease areas such as asthma, cancer, infections, mental health, diabetes and digestive conditions. Its drugs and vaccines earned billions of pounds in 2013; its top-selling products that year were Advair, Avodart, Flovent, Augmentin, Lovaza and Lamictal. GSK has applied for regulatory approval in 2014 for the first ever malaria vaccine called RTS,S, which will be available for five percent above cost. GSK’s consumer healthcare products, which earned £5.2 billion in 2013, include brands such as Sensodyne and Aquafresh toothpaste, the malted-milk drink Horlicks, Abreva a medication for cold sores, Breathe Right nasal strips, Nicoderm for cigarette cessation and Nicorete, also nicotine replacements, and Night Nurse, a cold remedy. GlaxoSmithKline stock market evolution: http://quotes.wsj.com/GSK .
