Drug maker acquires European brands
An over-the-counter pharmaceutical maker will add several European brands to its portfolio following a recent acquisition agreement.
Dublin-based Perrigo, which has its North American headquarters in Allegan, said yesterday it has signed an agreement to acquire a portfolio of well-established over-the-counter brands from GlaxoSmithKline, GSK, Consumer Healthcare.
Perrigo will acquire the OTC asset portfolio in an all-cash transaction.
The purchase price was not disclosed.
The acquisition is expected to be immediately accretive to Perrigo’s calendar 2015 adjusted earnings per share, excluding estimated intangible amortization and transaction-related costs.
The transaction has been unanimously approved by the boards of directors of Perrigo and GSK, and is expected to close in the third quarter of 2015.
Perrigo will acquire the following assets:
- GSK's NiQuitin nicotine replacement therapy business, primarily in the European Economic Area, or EEA, and Brazil; and Novartis's legacy Australian NRT business, including the Nicotinell brand
- Several assorted OTC brands including Coldrex, which is a cold and flu treatment, across the EEA; Panodil, a pain relief agent; Nezeril, which is a nasal decongestant; and Nasin, also a nasal decongestant, in Sweden
- Novartis's legacy cold sore management products primarily in the EEA, marketed under the brand names Vectavir, Pencivir, Fenivir, Fenlips and Vectatone.
“This acquisition demonstrates Perrigo’s ability to execute on our ‘base-plus-plus-plus’ strategy, in which we make selective, accretive transactions to expand our durable base business,” said Joseph Papa, chairman, president and CEO, Perrigo.
Papa noted Perrigo is building on the global platform it established recently with the acquisition of Omega Pharma.
The company plans to “capture an even greater share of the $30-billion European OTC market opportunity with several well-established, complementary brands that bolster our OTC product portfolio,” according to Papa.
“We are committed to making investments in these brands to grow their market positions in key geographies,” he added.
He said Perrigo plans to follow Omega Pharma’s proven approach to brand building and more acquisitions are likely to follow.
“Perrigo is uniquely positioned to maximize the potential of these brands by leveraging Omega Pharma’s leading European commercial infrastructure, pan-European distribution network, strong brand-building capabilities and exceptional management team,” Papa said.
The announcement follows Perrigo’s recent acquisition of European OTC dermatological product Vitasil, which recently closed.
“With our global platform in place and our robust balance sheet, we are ideally positioned to execute immediately accretive deals, such as this one, that will have a multiplier effect on our growth,” Papa said.