ALLEGAN, Mich. Perrigo announced Tuesday that it has signed a definitive merger agreement to acquire a baby formula maker for more than $800 million.
Perrigo said its acquisition of PBM Holdings -- which manufactures and distributes over-the-counter, store-brand infant formula and baby foods sold by leading retailers in the mass, club, grocery and drug channels in the United States, Canada, Mexico and China -- is expected to close in its fiscal 2010 fourth quarter, pending regulatory approval.
Pursuant to the terms of the agreement, Perrigo will acquire 100% of the shares of PBM Holdings for $808 million in cash. No PBM debt will be assumed in this transaction, Perrigo said.
"This acquisition positions Perrigo to expand its store-brand market leadership into another important product category for our retailers," said Perrigo chairman and CEO Joseph Papa. "Just as Perrigo developed the OTC store-brand market over the last several decades, PBM created the store-brand value proposition within the highly regulated infant formula space. We believe that PBM’s mission to provide families with high-quality, state-of-the-art formulas at sensible prices complements perfectly Perrigo’s mission to deliver quality, affordable health care to consumers."