Advertisement Perrigo agrees to buy OTC firm Omega Pharma for EUR3.6bn - Pharmaceutical Business review
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Perrigo agrees to buy OTC firm Omega Pharma for EUR3.6bn

Ireland-based Perrigo Company has signed an agreement to acquire Belgian over-the-counter (OTC) healthcare firm Omega Pharma, for about €3.6bn.

perrigo

The deal, funded through a combination of cash, debt and equity, includes the purchase of Omega’s equity for €2.48bn and the assumption of €1.1bn in debt.

The acquisition is expected to improve Perrigo’s OTC product offering and expand its distribution through Omega’s well established platform.

Perrigo chairman, president and CEO Joseph Papa said: "The combination of these two great companies accelerates Perrigo’s international growth strategy, substantially diversifies our business streams and establishes a durable leadership position in the European OTC marketplace.

"We believe this strategic transaction will enhance shareholder value by further strengthening our industry-leading revenue and cash flow growth profile and by expanding market opportunities.

"Omega brings a leading OTC product portfolio, European capabilities, and a highly experienced management team to support Perrigo’s continued growth."

Omega has around 2,000 products in its portfolio, including cough and cold, skincare, pain relief, weight management and gastrointestinal treatment brands.

The transaction, which is subject to customary regulatory approvals, is scheduled to be completed in the first quarter of 2015.

In this deal, JP Morgan Securities and Barclays are serving as financial advisers, and Freshfields Bruckhaus Deringer is serving as legal adviser to Perrigo.

For Omega, Morgan Stanley is serving as financial adviser and Allen & Overy as legal adviser in this transaction.


Image: Exterior view of Perrigo’s Eastern Avenue Office. Photo: courtesy of Perrigo Company.