SK Capital buys Perrigo's Israel unit Chemagis for $110m

John Hendrickson

The active pharmaceutical ingredients unit was bought by Perrigo as part of the $818 million acquisition of Agis in 2005.

Pharmaceutical company Perrigo Company (NYSE:PRGO; TASE:PRGO) has reported that it has signed an agreement to sell its Israel-based API (active pharmaceutical ingredient) unit Chemagis for $110 million. Sources inform "Globes" that the buyer is SK Capital, a US private investment firm which specializes in pharmaceutical and chemical firms and has a portfolio of assets worth $1.9 billion.

Perrigo acquired Chemagis in 2005 as part of the deal which saw it pay $818 million for Agis, the Israeli pharmaceutical company then controlled by Mori Arkin. Most of Chemagis's operations are in Ramat Hovav near Beer Sheva although it also has small plants in Tel Aviv's Yad Eliahu and Bnei Brak as well as the US and India. The company has 300 employees.

Perrigo reported better than expected second quarter results with revenue of $1.2 billion, down 7.7% from the corresponding quarter, but $60 million better than the analysts' estimates. Net loss narrowed by 87% from the corresponding quarter to $70 million. Adjusted net profit was $175 million, down 5.4% from the corresponding quarter and earnings per share was $1.22, $0.29 above the analysts' forecast.

Perrigo's share price, which has fallen 20% this year, was up 12.7% on the Tel Aviv Stock Exchange in afternoon trading.

Perrigo is currently searching for a new CEO after John Hendrickson said that he is stepping down.

Published by Globes [online], Israel business news - www.globes-online.com - on August 10, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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John Hendrickson
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