Perrigo Company (NYSE:PRGO; TASE:PRGO) is acquiring Belgian company Omega Pharma, one of the largest European manufacturers of over-the-counter (OTC) drugs, for $4.5 billion.
The deal is composed of the purchase of share capital for €2.48 billion and €1.1 billion in debt. Payment is through cash, debt, and a share swap.
Omega's sales totaled $1.6 billion in the 12 months ending on September 30, 2014. The company sells 2,000 different products to pharmacy chains and drugstores.
Perrigo also published its fourth quarter financial results today, reporting that revenue rose to $952 million and its GAAP net profit totaled $96 million, representing $1.40 per share, while its non-GAAP net profit grew 30% to $188 million.
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 had $1.6 billion revenue during the 12 months ended September 30, 2014, making it the fifth largest player in the European OTC market and the largest or second largest player in four individual European markets.
Published by Globes [online], Israel business news - www.globes-online.com - on November 6, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014