Expanding its over-the-counter product portfolio
Irish consumer healthcare company Perrigo is to acquire Belgium's Omega Pharma for €3.6bn (US$4.5bn), to expand its over-the-counter product portfolio while enhancing its scale and distribution.
The purchase price includes Omega's equity for €2.48bn and the assumption of €1.1bn of debt. Of the equity purchase price, 25% will be funded by Perrigo stock (approximately five million shares) placed directly to Omega's Founder Marc Coucke and 75% funded through a combination of cash and debt.
The deal is expected to close in the first quarter of 2015.
Omega generated revenue of around $1.6bn to 30 September 2014 from sales of its cough & cold, skincare, pain relief, weight management and gastrointestinal brands.
Perrigo Chairman, President and CEO Joseph Papa said the combination of the two companies accelerates Perrigo's international growth strategy, diversifies its business streams and establishes a leadership position in the European OTC marketplace.
'Omega brings a leading OTC product portfolio, European capabilities, and a highly experienced management team to support Perrigo's continued growth,' he said.
Coucke added: 'This is an exciting time in the history of our company. My continued ownership investment demonstrates my confidence in the potential for the combined company. Together, we will have a substantially broader product portfolio with established global platforms and commercial channels better to serve our customers and patients.'