Perrigo Company Acquires Assets Of Sergeant's Pet Care Products, Inc.
The Perrigo Company announced that a definitive agreement has been signed for them to acquire all of the assets of Sergeant's Pet Care Products, Inc. (Sergeant's), a privately-held, Omaha, Nebraska-based manufacturer of OTC companion animal healthcare products, for approximately $285 million in cash.
As a result of the acquisition, Perrigo expectes they will receive a significant tax benefit. The present net value of the tax benefit is believed to be approximately $50 million. Pending the satisfaction of closing conditions, including regulatory approvals, the acquisition should close during the company’s fiscal first quarter 2013.
“We welcome Sergeant's two hundred-plus employees and over one thousand SKU's to the Perrigo family. This is a first step in executing on our strategy to expand our Consumer Healthcare portfolio into pet care, an adjacency of interest to our retail customers. We are excited to bring quality and value to consumers and their extended families,” Perrigo Chairman and CEO Joseph C. Papa stated.
Transaction benefits include immediate access to adjacent categories where Perrigo will drive enhanced product offerings and value for its retail customers; affordable healthcare with high barriers to entry; entry into a sizeable and growing self-pay market with pet care; revenue synergies; and compelling value consistent with stated acquisition criteria.
In terms of tax savings, the estimated net present value of the savings is believed to be approximately $50 million.
An investors and analysts conference call took place at 9:30 a.m. (EDT) on Thursday, September 13.
Perrigo Company is a global provider of healthcare products. They develop, manufacture, and distribute over-the-counter and generic pharmaceuticals, infant formulas, nutritional products, dietary supplements and active pharmaceutical ingredients (API). More information can be found at www.perrigo.com.
The official website of Sergeant's Pet Care Products, Inc. is http://www.sergeants.com.
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