Perrigo Company (Nasdaq:PRGO; TASE:PRGO) has completed the acquisition of Britain's Rosemont Pharmaceuticals Ltd. for £180 million ($283 million) in cash. Leeds-based Rosemont produces oral liquid formulations of specialty and generic prescription drugs.
The acquisition of Rosemont is Perrigo's second major buy this month, following the acquisition of US animal healthcare products company Valcera Inc. for $160 million.
Perrigo estimates that the Rosemont acquisition will boost its GAAP-based earnings per share by $0.04-0.07 and its non-GAAP earnings per share by $0.08 accretive through the rest of the 2013 fiscal year through June. Perrigo therefore revised its GAAP-based 2013 earnings per share guidance to $4.67-4.87, compared with $4.18 in fiscal year 2012; and its non-GAAP earnings per share guidance to $5.53-5.73, compared with $4.99 in 2012.
Perrigo said that Rosemont currently has more than 90 products and was well positioned for future growth given its diverse product pipeline, relevant favorable demographics and export opportunities. It had £40 million in sales in 2012, and its gross and operating margins were similar to those of Perrigo's Rx pharmaceuticals segment, where Rosemont's operations will be included.
Perrigo added that the acquisition will enable Perrigo to expand its UK portfolio, and current infrastructures and longstanding customer relationships. Rosemont's portfolio of liquid formulations addresses a growing critical medicinal need within pediatrics and geriatrics, presenting an opportunity for future growth and European expansion. The acquisition also fits in with Perrigo's strategy to expand into additional liquid categories and diversify its prescription medicines product portfolio.
Perrigo chairman and CEO Joseph Papa said, "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 UK. Similar to Perrigo's position in the niche US extended topical generic prescription market, Rosemont is the #1 player in the niche specialty UK oral liquid formulations market."
Published by Globes [online], Israel business news - www.globes-online.com - on February 11, 2013
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