Benzinga | Mar 1, 2021 07:13AM EST

Perrigo To Sell Generic Rx Business For $1.55B In Total Consideration, Including $1.5B In Cash

DUBLIN, March 1, 2021 /PRNewswire/ -- Perrigo Company plc (NYSE; TASE: PRGO), a leading global provider of Consumer Self-Care Products, announced today that it has reached a definitive agreement to sell its Generic Rx Pharmaceuticals business to Altaris Capital Partners, LLC for total consideration of $1.55 billion, including $1.5 billion in cash, subject to customary adjustments. As part of the consideration, Altaris will also assume more than $50 million in potential R&D milestone payments and contingent purchase obligations with third-party Rx partners.

Perrigo CEO and President Murray S. Kessler commented, "The sale of our Generic Rx business is the most impactful step in Perrigo's transformation plan. This transaction establishes Perrigo as a pure-play global consumer self-care company with industry leading fundamentals. Perrigo Consumer Self-Care will have a focused portfolio with over $4 billion in revenues focused on the growing trends towards self-managed health and wellness. This transaction also provides the company with increased financial predictability and flexibility. After the transaction closes, Perrigo expects to have more than $2 billion in cash available to advance its consumer self-care strategy, preferably through prudent and revenue accretive M&A. This is an exciting day for Perrigo."

Kessler concluded, "Altaris is an ideal owner to maximize the future potential of the Rx business, which has made important contributions to Perrigo and to the health of patients. I would like to thank the Rx team for their significant contributions over the years and their dedication throughout this process."

George Aitken-Davies, Co-founder and Managing Director of Altaris, commented, "We are delighted to be partnering with the management team and employees of Perrigo's Rx Pharmaceuticals business." Garikai Nyaruwata, Managing Director of Altaris, added, "Given our experience in the pharmaceutical sector and track record of corporate carve-out transactions, we believe we are well-positioned to support the Rx business as it becomes a standalone company focused on its mission of developing and marketing affordable pharmaceutical products."

The Rx business serves patients and health systems with 'extended topicals' medications, to treat ailments at more affordable prices. The differentiated and diversified portfolio includes topical generic medicines in multiple dosage forms, including creams, foams, mousses, gels, liquids and inhalable products.

The transaction is subject to customary closing conditions and is expected to close by the end of the third quarter. Centerview is serving as financial advisor and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to Perrigo on the transaction. J.P. Morgan is serving as lead financial advisor and Lead Left Arranger and Goldman Sachs & Co. is serving as financial advisor and Arranger to Altaris Capital. Schiff Hardin LLP and Cleary Gottlieb are providing legal counsel to Altaris.