ALLEGAN — Perrigo Co. (Nasdaq: PRGO) Monday announced that it has closed the acquisition of Velcera Inc., the Yardley, Pa.-based pet health products company, for $160 million in cash.
“This acquisition is another important step forward in executing our plan to expand our pet health product offering,” said Perrigo chairman and CEO Joseph C. Papa. “Velcera’s mix of products represents a natural extension to the Sergeant’s portfolio we acquired last October. Additionally, the PetArmor franchise furthers our strategy to make quality, affordable pet care products available to consumers everywhere.”
Velcera, together with major retail partners, has been instrumental in developing an over-the-counter market for pet health products traditionally dispensed only by veterinarians. Retail sales of the PetArmor franchise exceeded $100 million during calendar year 2012, the value-brand’s first full year on the market, having launched in April 2011. Velcera sales for calendar year 2012 were approximately $60 million. The PetArmor franchise brand will be supported by a number of pipeline product candidates in both flea and tick and health and wellness categories that will continue to bring additional vet technologies to the hands of consumers in the mass market.
In fiscal 2013, Velcera is expected to be slightly accretive to adjusted EPS and slightly dilutive to GAAP EPS after the inclusion of intangible amortization, transaction and integration related expenses. In fiscal 2014, Velcera is expected to be $0.11 accretive to adjusted EPS and neutral to marginally dilutive to GAAP EPS after the inclusion of intangible amortization, transaction and integration related expenses. The transaction is expected to be ROIC accretive in fiscal 2015.
From its beginnings as a packager of generic home remedies in 1887, Allegan-based Perrigo Co. has grown to become a global provider of 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. The company’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.