Perrigo closes GSK OTC portfolio acquisition
DUBLIN — Perrigo announced Friday that it had completed its $224 million (€200 million) acquisition of several OTC brands from GlaxoSmithKline’s OTC portfolio. The company expects the acquisition to be immediately accretive to its 2015 adjusted earnings per share.
Included in the deal are GSK's NiQuitin nicotine replacement therapy business, primarily in the European Economic Area and Brazil, and Novartis's legacy Australian NRT business, including the Nicotinell brand; several assorted OTC brands including Coldrex (cold and flu treatment) across the EEA, and Panodil (pain relief), Nezeril (nasal decongestant) and Nasin (nasal decongestant) in Sweden; and Novartis' legacy cold sore management products primarily in the EEA, marketed under the brand names Vectavir, Pencivir, Fenivir, Fenlips and Vectatone.
“We are thrilled to already add to our pan-European infrastructure with strategic M&A that has a multiplier effect on our growth,” Perrigo chairman, president and CEO Joseph Papa said. “It is Perrigo's superior supply chain capabilities, and Branded Healthcare's brand building expertise, which will allow us to realize this portfolio's full potential and capture an even greater share of the $30 billion European OTC market opportunity. I'm excited about the future prospects in this truly global consumer business platform and the mega trends that we can capitalize on.”
Mylan shareholders approve proposed Perrigo acquisition
HERTFORDSHIRE, England and Pittsburgh — Mylan announced Friday that its shareholders had voted in favor of its proposed acquisition of Perrigo at their annual shareholders meeting. Two-thirds of the votes were cast in favor of the transaction.
“We sincerely appreciate our shareholders' overwhelming support of this transaction, as well as their support of Mylan's ongoing strategy,” Mylan executive chairman Robert Coury said. “We believe the vote underscores shareholders' clear understanding of, and support for, the strategic rationale and potential for value creation inherent in the combination of Mylan and Perrigo.”
Now, Mylan will move forward with its plans to tender a formal offer directly to Perrigo’s shareholders. Though Coury expressed confidence that “they too will support this unique and compelling transaction,” Perrigo’s chairman, president and CEO Joseph Papa is confident in the opposite outcome.
“Following extensive discussions with our shareholders, we are confident that most of them believe that Mylan's offer substantially undervalues Perrigo and would dilute our growth profile and superior valuation,” Papa said.