Health Care, Manufacturing, and Retail

Perrigo acquiring Ranir for $750M

May 9, 2019
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Ranir headquarters
Grand Rapids-based Ranir makes store brand and branded oral care products. Courtesy Ranir

A drug manufacturer with a major West Michigan presence is purchasing a local maker of oral care products for $750 million.

Dublin-based Perrigo — which has its North American headquarters in Allegan — is purchasing Grand Rapids-based Ranir, according to the companies today.

Ranir generated net sales of $287 million in 2018.

Perrigo reported $4.7 billion in net sales in 2018.

Perrigo plans to use cash, proceeds from the sale of its animal health business and short-term debt to fund the transaction.

The transaction is expected to close in the third quarter of calendar year 2019.

The transaction is expected to immediately increase stand-alone Perrigo net sales growth, adjusted operating income growth and adjusted earnings per share.

Perrigo said it has identified multiple opportunities to "drive annual operating synergies" of about $10 million by 2021, in addition to increased tax value.

Ranir said its primary manufacturing facilities, housed at its headquarters, are designed to meet future growth.

Perrigo described the Ranir acquisition as an “attractive opportunity both strategically and financially” to expand its footprint in the oral care category.

"The addition of Ranir to the Perrigo family illustrates a key component of our new strategy, accelerating growth by pursuing adjacent self-care categories,” said Murray Kessler, president and CEO, Perrigo.

Rich Sorota, president and CEO of Ranir, said the company has been working over the past several years on a comprehensive growth plan to advance its purpose.

“As part of this plan, we are taking the next step in our transformation, while remaining fully committed to our heritage and values,” Sorota said. “This ultimately enables us to better pursue our purpose worldwide."

Morgan, Lewis and Bockius is serving as Perrigo's legal counsel. 

William Blair & Company is serving as the exclusive financial advisor for Ranir. Kirkland & Ellis is Ranir’s counsel.

Ranir

Founded in 1979, Ranir has a portfolio of more that 300 oral care solutions, including power toothbrush heads, power toothbrush handles, whitening strips, manual toothbrushes, floss, dentures and travel kits, including its Plackers and REMBRANDT brands.

Its products are sold by more than 150,000 storefront and online retailers in more than 50 counties.

The company has more than 650 employees.

Perrigo

Perrigo (NYSE, TASE: PRGO) is a manufacturer of private label over-the-counter and generic prescription pharmaceuticals, as well as health and wellness products.

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