Perrigo Closes Acquisition of Paddock Labs
ALLEGAN -- Perrigo Co. (Nasdaq: PRGO) announced that it has closed the acquisition of Paddock Laboratories Inc., a privately held, Minneapolis-based pharmaceutical manufacturer of generic prescription pharmaceuticals and over-the-counter specialty products for approximately $540 million in cash.
Said Perrigo chairman and CEO Joseph C. Papa: "This acquisition is another important step forward in executing Perrigo's strategy to expand our specialty portfolio of generic Rx products. It adds incremental scale, as well as excellent development and manufacturing capabilities across a spectrum of niche dosage forms. It solidifies Perrigo's leading position in the extended topical space and strengthens our ability to offer new products into the market. Paddock has a proven record for quality manufacturing with great customer service."
As previously highlighted, Perrigo expects to receive a significant tax benefit generated from the acquisition of Paddock's assets. The net present value of the tax benefit is estimated to be $95 million. Inclusive of the tax benefit, the total consideration for the acquisition is approximately $445 million.
As a result of the closing of the acquisition, Watson Pharmaceuticals Inc. (NYSE: WPI) will acquire a portfolio of generic pharmaceutical products from Perrigo that are being divested as a result of the FTC review. The total revenues from marketed products represent less than 2 percent of the combined entities' total revenue, and none of the revenue from the divested pipeline product were included in Perrigo's projections for the next few fiscal years. Terms were not disclosed.
Perrigo develops, manufactures and distributes OTC and generic prescription pharmaceuticals, infant formulas, nutritional products, active pharmaceutical ingredients and pharmaceutical and medical diagnostic products. The company is the world's largest store brand manufacturer of OTC pharmaceutical products and infant formulas. The company's primary markets and locations of manufacturing and logistics operations are the United States, Israel, Mexico, the United Kingdom and Australia.
More at www.perrigo.com.
