Tags: Perrigo | Omega | drug | merger

Perrigo to Buy Omega Pharma of Belgium for 3.6 Billion Euros

Thursday, 06 Nov 2014 10:45 AM

Perrigo Co. agreed to buy Belgian health-products provider Omega Pharma NV for 3.6 billion euros ($4.5 billion), including debt, in a deal that will expand its presence in Europe.

The acquisition will place Perrigo among the world’s five largest providers of over-the-counter health-care remedies, the company said today in a statement. One-quarter of the purchase will be funded with stock, and the rest will be paid for using cash and debt, it said. The price includes the assumption of 1.1 billion euros of debt.

“Omega brings a leading OTC product portfolio, European capabilities and a highly experienced management team to support Perrigo’s continued growth,” Joseph Papa, chairman and chief executive officer, said in the statement.

Perrigo, which traces its roots back to 1887, develops, manufactures and distributes over-the-counter and prescription medicines, nutritional products and pharmaceutical ingredients. Last year it bought Irish drug company Elan Corp. for about $8.6 billion, allowing it to move its corporate address from Michigan to Ireland.

Companies including Sanofi, Actavis Plc and Boehringer Ingelheim GmbH had been interested in Omega Pharma, people with knowledge of the matter told Bloomberg News last month.

Omega Value

Omega Pharma, which makes drugs including painkiller Solpadeine, was valued at 848 million euros when it was taken private by founder and Chief Executive Officer Marc Coucke, with Waterland Private Equity Investments BV and several co- investors, in February 2012 after 13 years as a public company.

Omega owns cough and cold, skincare, pain relief, weight management and gastrointestinal treatment brands, among its roughly 2,000 products, according to the statement. It operates in 35 countries.

The two companies had a combined $5.7 billion in revenue in the last 12 months, according to the statement. Perrigo reported $4.06 billion in sales in the 12 months ended June 28.

Perrigo said it secured a 1.75 billion-euro bridge facility from JPMorgan Chase & Co. and Barclays Plc to assure the cash portion of the deal. About 5 million Perrigo shares will be “placed directly to” Coucke, the company said. The shares would be valued at about $790 million as of yesterday’s close. The boards of both companies approved the deal, expected to close in the first quarter of 2015, Perrigo said.

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Perrigo agreed to buy Belgian health-products provider Omega Pharma for $4.5 billion, including debt, in a deal that will expand its presence in Europe.
Perrigo, Omega, drug, merger
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2014-45-06
Thursday, 06 Nov 2014 10:45 AM
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