Perrigo Buys British Pharma Firm For $283M
ALLEGAN -- Perrigo Co., the Allegan-based over-the-counter health and beauty products and generic pharmaceutical maker, Monday announced a deal to acquire Leeds, England-based Rosemont Pharmaceuticals Ltd. for $283 million in cash.
Perrigo said the deal expands its international presence and gives it new manufacturing and research and development capabilities in oral liquid drug formulations.
Perrigo officials said Rosemont's Leeds plant and the company's 200 employees would be retained.
"This is new technology for us," said Art Shannon, vice president of investor relations and communications for Perrigo. "We will be using their technology and their plants."
Founded in 1967, Rosemont is a specialty and generic prescription pharmaceutical maker with a portfolio of more than 90 products in manufacturing and marketing of liquid medications taken orally.
Rosemont posted 2012 sales of about $60 million with margins similar to those of Perrigo's prescription pharmaceuticals segment, where Rosemont's results of operations will be included.
Perrigo said the company offered the following advantages to Perrigo:
* Attractive Specialty Market: Rosemont's portfolio of liquid formulations addresses a critical medicinal need within pediatrics, as well as for those patients with dysphagia (swallowing difficulties), a common malady in a growing elderly population.
* Immediate Access to Oral Liquid Formulations: The transaction is aligned with Perrigo's strategic growth objective to expand into additional liquid categories and diversified prescription medicines to further broaden its customer product portfolio.
* Leadership Position in Sizeable and Growing Market: Favorable demographic drivers have been increasing demand for easier to swallow products. Rosemont's leading position in this market today, combined with its robust pipeline portfolio and access to under-penetrated international markets, represents an exciting opportunity for future growth and European expansion.
* Synergy Opportunity: The acquisition allows Perrigo to expand its U.K. portfolio while leveraging its established distribution and administrative infrastructures and long standing customer relationships.
"We continue to focus on expanding our international footprint and view the acquisition of Rosemont as an opportunistic next step given our existing presence in the U.K.," said Perrigo chairman, president and CEO. "Similar to Perrigo's position in the niche U.S. extended topical generic prescription market, Rosemont is the No. 1 player in the niche specialty U.K. oral liquid formulations market. We are excited to announce the acquisition of Rosemont and welcome its more than 200 employees to the Perrigo family. This transaction represents another step forward executing our strategy to make quality healthcare products more affordable for consumers around the world."
Rosemont is expected to reduce Perrigo's 2013 earnings per share by 4 to 7 cents after the inclusion of estimates for expenses of the acquisition, and for the acquisition of assets above their fair market value. The acquisition will add 8 cents a share this year to so-called adjusted earnings, which excludes such one-time events.
Including this acquisition, Perrigo now expects fiscal 2013 reported earnings to be between $4.67 and $4.87 per diluted share as compared to $4.18 in fiscal 2012 and fiscal 2013 adjusted earnings to be between $5.53 and $5.73 per diluted share as compared to $4.99 in fiscal 2012.
From its beginnings as a packager of generic home remedies in 1887, Perrigo has grown to become a global provider of over-the-counter and generic prescription pharmaceuticals, infant formulas, nutritional products, pet health, dietary supplements and active pharmaceutical ingredients. 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.
