Perrigo to raise €800m for takeover

Leading generic drugs producer, Perrigo is set to raise approximately $1bn (€800m) — via a share placing — to mainly cover the cost of its proposed takeover of Belgian firm, Omega Pharma Invest NV.

Perrigo is ranked as the number one maker of generic over-the-counter drugs in the US and, last year, moved its corporate headquarters to Dublin following its $9.5bn purchase of Irish biotechnology firm, Elan.

It emerged earlier this month, that Perrigo has reached agreement to buy Omega for €3.6bn, including debt (the price includes the assumption of €1.1bn of debt), a deal which will significantly boost its foothold in the European healthcare market, and place it among the top-five largest over-the-counter treatment providers in the world.

It will also allow Perrigo easier access to European pharmacies, as the Belgian firm already has direct relationships with more than 200,000 owners.

“Omega instantly enhances our scale and broadens our footprint, providing us with immediate access to an established commercial network,” Perrigo’s chief executive, Joe Papa told investors earlier in the month.

Perrigo yesterday announced a share offering of just over 6.8m ordinary shares, which will raise around $1bn.

If the takeover does not conclude, the money will go to debt repayment, investment in subsidiaries, capital expenditure and general corporate purposes.

Formed in 1987 by two former pharmacy students at Ghent University, and taken private in early 2012 after 13 years as a public company, Omega operates in 35 countries and has a portfolio of around 2,000 prescription-free treatment products for such diverse uses as pain relief, weight control, gastrointestinal needs, skincare, pain relief and coughs and colds. Between them, Omega and Perrigo had combined revenues of nearly $6bn last year.

Back in August, Perrigo reported a 54% drop in net income for the 12 months to the end of June, to $205.3m (€154m).

While the company incurred once-off costs of over $200m from its purchase of Elan, the benefits of that deal have already begun to materialise. Those annual results from Perrigo also detailed a jump – from $3.54bn to nearly $4.1bn – in yearly net sales, while fourth quarter figures (both income and revenue) were boosted partially by sales and royalties from Elan’s former multiple sclerosis treatment, Tysabri. Perrigo is also set to benefit from around $150m in annual tax savings from acquiring Elan and having its tax base in Ireland, rather than the US.


To instantly power up your look, veer towards the hard shoulder.Bold shoulder: How to instantly power up your look

Plums are a wonderful autumn fruit, useful for all sorts of recipes both sweet and savoury. In Ireland we are blessed with wonderfully sweet plums.Currabinny Cooks: Juicy plums work for both sweet and savoury dishes

The rise of home skincare devices doesn't mean that salons and clinics no longer serve a purpose.The Skin Nerd: Don’t try this at home — new treatments in the salon

Millions of gamers watched Fortnite reach breaking point on Sunday night, with ten seasons of mysterious storyline culminating in meteors hitting the island and everything disappearing.GameTech: End of beginning for Fortnite as Chapter 2 finally goes live

More From The Irish Examiner