Cash acquisition for PBM holdings by Perrigo for $808 million
Date of publication: July 27, 2010
Perrigo has acquired the leading store brand infant formula manufacturer and distributor for $808 million in cash. The geographical network of Perrigo now includes retailers and drug and grocery store channels in the US, Canada, Mexico and China. See this illustrated on our 2010 M&A Scorecard
By forging this acquisition is it hoped that the two companies can combine Perrigo’s store brand expertise and market leadership with PBM manufacturing and distribution capabilities and provide an important product category for retailers.
It is also believed that the acquisition will enable PBM to provide high quality, state of the art nutritional formulas combined with PBMs ability to deliver quality and affordable healthcare to consumers.
This cash acquisition follows the earlier announced cash acquisition of the Australian company Orion Laboratories by Perrigo for $48 million. Orion Laboratories specilaizes in supplying over-the counter store brand pharmaceutical products in Australia and New Zealand.
This deal is expected to generate more than $30 million in sales and provides Perrigo with local distribution and marketing expertise. It will also enable Perrigo to leverage Orion Laboratories’ product pipeline and, like the deal with PBM, provide consumers with quality and affordable healthcare.
The acquisitions of PBM and Orion Laboratories by Perrigo have both been for cash and indicate that Perrigo is determined to increase its global market presence within the over-the-counter industry.
Tim Martin
July 2010