Drug maker acquires German brand
An over-the-counter drug maker is acquiring a German dietary supplement brand to build its portfolio and market share in Europe.
Dublin-based Perrigo, which has its North American headquarters in Allegan, said this week that it has entered into an agreement to “acquire Naturwohl Pharma GmbH, with its leading German dietary supplement brand, Yokebe.”
Terms of the deal weren’t disclosed.
The deal is expected to close in the third quarter.
The Yokebe brand is expected to generate about 30 million euro in full year 2015 net sales.
The acquisition is expected to be immediately accretive to Perrigo's calendar 2015 adjusted earnings per share.
Yokebe, the second-largest dietary brand by market share in Germany, comes in a shake/liquid form and is marketed within the meal-replacement category.
Joseph Papa, Perrigo chairman, president and CEO, called the Yokebe brand “margin enhancing” and said it demonstrates Perrigo’s continued execution of its Base Plus Plus Plus strategy by “building on Omega Pharma's leading OTC product portfolio and European commercial infrastructure.”
“Coupled with our recent acquisition of well-established European brands from GlaxoSmithKline, we continue to leverage our robust balance sheet and strong global platform to execute immediately accretive deals, such as this one, that will have a multiplier effect on our growth,” Papa said.
Papa has previously described Perrigo’s Base Plus Plus Plus strategy as making “selective, accretive transactions to expand out durable base business” and said the company is “building on the global platform we established with the Omega Pharma acquisition.”
He said Perrigo has the potential to “capture an even greater share of the $30 billion European OTC market opportunity."