Perrigo Closes Acquisition of Paddock Laboratories

SHARE:

Email

Print

LinkedIn

Facebook

Twitter

August 2, 2011

Perrigo Company has finalized the acquisition of Paddock Laboratories Inc., a privately held, Minneapolis-based manufacturer of generic prescription pharmaceuticals and OTC products, for $540 million in cash.

“This acquisition is another important step forward in executing Perrigo’s strategy to expand our specialty
portfolio of generic Rx products. It adds incremental scale, as well as excellent development and manufacturing capabilities across a spectrum of niche dosage forms,” said Perrigo Chairman and CEO Joseph C. Papa. “It solidifies Perrigo’s leading position in the extended topical space and strengthens our ability to offer new products into the market. Paddock has a proven record for quality manufacturing with great customer service.”

As a result of the transaction, Perrigo expects to receive a significant tax benefit, estimated at $95 million in net present value. Inclusive of the tax benefit, the total consideration for the acquisition is approximately $445 million, the company said in a statement.

Closing of the Paddock deal now enables Watson Pharmaceuticals Inc. to acquire a portfolio of generic pharmaceutical products from Perrigo, which are being divested as a result of the FTC review. The total revenues from marketed products represent less than 0.2 percent of the combined entities’ total fiscal year 2011 revenues, and none of the revenues from the divested pipeline product were included in Perrigo’s projections for the next few fiscal years, the company said.

Read These Related Articles:

• Top Care OTC Meds Now Covered by Insurers
• Perrigo Cleared to Sell Store Brands Versions of Gerber and Mucinex
• Perrigo Gets FDA Final Approval for Zantac 150 Generic Equivalent
• Perrigo Switches Dosing System and Labeling for Pediatric Medications
• PLMA Live!: Michael Jandernoa, Former CEO of Perrigo

Most Read

Guest Columns

Grocery Aisle Innovation Key to Retailer and Consumer Cost Savings

Retailers are redesigning the aisle, appealing to environmentally friendly consumers and capitalizing on market trends to make their private label brands more competitive.

Source: Tetra Pak Inc.

How to Develop a Private Label Expression Aligned with Retail Brand Strategy

By creating private label as a marketing tool rather than just a price alternative, retailers gain the opportunity to tell a complete brand story while simultaneously boosting customer loyalty.

Source: CBX

Using the Store Banner to Endorse Private Label Architecture

Although the economic downturn accelerated private label growth in Europe, there was another key driver -- retailers started to brand their stores.

Source: IPLC

See All Guest Columns »

Press Releases