Perrigo buying Naturwohl in new pharma deal
Pharmaceutical industry acquisition target Perrigo (PRGO) Wednesday said it’s buying German pharmacy company Naturwohl Pharma GMbH, the latest transaction in the sector’s surge of mergers and acquisitions.
Perrigo, operated from Michigan but headquartered in Dublin following a corporate tax inversion, did not disclose terms of the deal for Naturwohl and its leading German dietary supplement brand Yokebe.
The brand, the second largest dietary choice by market share in Germany, is expected to generate approximately €30 million ($32.7 million) in full year 2015 net sales, Perrigo said.
Approved by the boards of both companies, the transaction is expected to immediately boost Perrigo’s 2015 adjusted earnings per share and exceed the firm’s return on investment capital threshold in calendar year 2016 , Perrigo said.
“Coupled with our recent acquisition of well-established European brands from GlaxoSmithKline, we continue to leverage or robust balance sheet and strong global platform to execute immediately accretive deals, such as this one, that will have a multiplier effect on our growth,” said Joseph Papa, Perrigo’s chairman, president and CEO.
He predicted the deal would help Perrigo capture a greater share of the $30 billion European over-the-counter market.
Perrigo shares were up 1.07% at $189.08 in morning trading after the announcement.
The transaction comes as Perrigo has rejected an unsolicited $75-a-share cash and stock takeover offer from pharma industry rival Mylan (MYL). In turn, Mylan has rebuffed an $82-a-share cash and stock offer from Israel-headquartered Teva Pharmaceutical Industries (TEVA).
Mylan, operated from Pennsylvania but headquartered in the Netherlands after a corporate tax inversion, is seeking approval from its shareholders for a hostile takeover of Perrigo. Abbott Laboratories, (ABT), which holds a roughly 14.5% stake in Mylan, recently confirmed its support for the proposed Perrigo deal.
Teva, meanwhile, has maintained its pursuit of Mylan, announcing in June it had acquired a 4.61% stake in the company.