ALLEGAN — Perrigo Co. (Nasdaq: PRGO) Monday announced that it has closed the acquisition of Sergeant’s Pet Care Products Inc., a privately held, Omaha, Neb.-based manufacturer of over-the-counter companion animal healthcare products, for approximately $285 million in cash.
As previously highlighted, Perrigo expects to receive a significant tax benefit generated from the amortization of the step-up in tax basis resulting from the acquisition of Sergeant’s assets. This increase in basis is expected to result in cash tax savings to Perrigo over the next 15 years. The estimated net present value of these savings is approximately $50 million.
“This acquisition allows us to expand our Consumer Healthcare portfolio by penetrating the pet care category, an adjacency of interest to our retail customers,” said Perrigo chairman and CEO Joseph C. Papa. “Sergeant’s has a proven record of innovation and high quality manufacturing with great customer service. We are excited to begin offering flea and tick, health and well-being, and consumable products at affordable prices to pet owners.”
Sergeant’s Pet Care Products offers flea and tick remedies, pet health and well-being products, natural and formulated treats, and consumable products. Sergeant’s has been caring for pets since 1868, and is America’s oldest full-line pet supplies company with one of the most trusted names in pet care.
From its beginnings as a packager of generic home remedies in 1887, Allegan-based Perrigo has grown to become a leading global provider of quality, affordable healthcare products. Perrigo develops, manufactures and distributes over-the-counter and generic prescription pharmaceuticals, infant formulas, nutritional products, dietary supplements and active pharmaceutical ingredients. The company is the world’s largest manufacturer of OTC pharmaceutical products for the store brand market. Perrigo’s primary markets and locations of logistics operations have evolved over the years to include the United States, Israel, Mexico, the United Kingdom, India, China and Australia.
More at www.perrigo.com.