Perrigo, a Dublin, Ireland-based global provider of healthcare products, will acquire Omega Pharma, an OTC healthcare company headquartered in Nazareth, Belgium, for $4.5 billion, including a $3.1 billion purchase price plus assumption of $1.4 billion in debt. The transaction will enhance Perrigo's OTC product offering and expand its distribution through Omega's strong established platform.
Joseph C. Papa, Perrigo chairman, president and CEO, said, "Our strong financial performance and operational structure have enabled the continued growth and globalization of our business model with Ireland as our gateway for this expansion. Together, our combined company will have an even larger product portfolio, broader geographic reach and enhanced scale."
Omega generated approximately $1.6 billion of revenue during the 12 months ended Sep. 30, making it the fifth largest player within the European OTC market and the largest or second largest player in four individual European markets. Omega owns many cough and cold, skincare, pain relief, weight management and gastrointestinal treatment brands among its portfolio of roughly 2,000 products.
Including product acquisitions, Omega has delivered compound annual revenue growth of approximately 10% over the last five years. Omega also offers geographic diversification with a commercial presence in 35 countries.
The proposed transaction is expected to close in the first quarter of 2015.