Perrigo to acquire OTC portfolio from GlaxoSmithKline
Perrigo has entered into an agreement to acquire a portfolio of established over-the-counter (OTC) brands from GlaxoSmithKline Consumer Healthcare, in connection with GSK's commitments to the E.C. and other regulators to divest these businesses in the context of the formation of a consumer health joint venture between GSK and Novartis International. Perrigo will acquire the following assets in an all-cash transaction:
- GSK's NiQuitin nicotine replacement therapy (NRT) business, primarily in the European Economic Area (EEA) and Brazil, and Novartis's legacy Australian NRT business, including the Nicotinell brand
- Several assorted OTC brands including Coldrex (cold and flu treatment) across the EEA, and Panodil (pain relief), Nezeril (nasal decongestant), and Nasin (nasal decongestant) in Sweden
- Novartis's legacy cold sore management products primarily in the EEA, marketed under the brand names Vectavir, Pencivir, Fenivir, Fenlips and Vectatone.
Joseph C. Papa, Perrigo chairman, president and CEO, said, "This acquisition demonstrates Perrigo's ability to execute on our 'Base Plus Plus Plus' strategy, in which we make selective, accretive transactions to expand our durable base business. We are building on the global platform we established with the Omega Pharma acquisition to capture an even greater share of the $30 billion European OTC market opportunity with several well-established, complementary brands that bolster our OTC product portfolio.”
The acquisition is expected to be immediately accretive to Perrigo's calendar 2015 adjusted earnings per share, excluding estimated intangible amortization and transaction-related costs. The transaction has been unanimously approved by the boards of directors of Perrigo and GSK, and is expected to close in the third quarter of 2015, pending approval by the E.C., the Australian Competition and Consumer Commission and Brazil's Council for Economic Defense, as well as the satisfaction of customary closing conditions.