Perrigo Company – PRGO – To Acquire Assets Of Sergeant’s Pet Care Products

Nasdaq: PRGO) announced that it has signed a definitive agreement to acquire substantially 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. Perrigo expects to receive a significant tax benefit as a result of the acquisition of Sergeant’s assets. The net present value of this tax benefit is estimated to be approximately $50 million. The acquisition is expected to close during the Company’s fiscal 2013 second quarter pending the satisfaction of closing conditions, including regulatory approvals.

• Sergeant’s Pet Care Products, Inc., a privately-held OTC animal health company, expands Perrigo’s portfolio to include a new adjacent product category, companion animal healthcare
• All cash transaction with a purchase price of $285 million, or $235 million net of certain tax benefits
• Sergeant’s expected to generate over $140 million in sales during its fiscal year ending September 30, 2012
• Acquisition anticipated to be immediately accretive to earnings and approximately $0.12 accretive to GAAP and $0.20 accretive to adjusted EPS in the first fiscal year post-closing
• Expected to be ROIC accretive in the first full fiscal year post-closing

Perrigo Chairman and CEO Joseph C. Papa stated, “This acquisition allows us to penetrate the pet care category by offering numerous flea and tick, health and well-being and consumable products to pet owners at affordable prices. Sergeant’s has a proven record of innovation, high quality manufacturing with great customer service. 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.”

About Perrigo – PRGO

From its beginnings as a packager of generic home remedies in 1887, Allegan, Michigan-based Perrigo Company (PRGO) has grown to become a leading global provider of quality, affordable healthcare products. PRGO develops, manufactures and distributes over-the-counter (OTC) and generic prescription (Rx) pharmaceuticals, infant formulas, nutritional products, dietary supplements and active pharmaceutical ingredients (API). PRGO is the world’s largest manufacturer of OTC pharmaceutical products for the store brand market. The Company’s primary markets and locations of logistics operations have evolved over the years to include the United States, Israel, Mexico, the United Kingdom, India, China and Australia.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.