Benzinga | Mar 1, 2021 08:08AM EST

Perrigo Divests Generic Pharma Business For $1.55B To Altaris Capital

Perrigo Company Plc (NYSE:PRGO) has agreed to sell its Generic Rx Pharmaceuticals business to Altaris Capital Partners for $1.55 billion.

* The price included a $1.5 billion payment in cash. Altaris will also assume more than $50 million in potential R&D milestone payments and contingent purchase obligations with third-party partners.

* Perrigo CEO and President Murray S. Kessler commented, "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."

* The Rx business offers 'extended topicals' medications to treat ailments at more affordable prices. The portfolio includes topical generic medicines in multiple dosage forms, including creams, foams, mousses, gels, liquids, and inhalable products.

* The transaction will close by the end of the third quarter.

* Centerview is serving as a financial advisor to Perrigo on the transaction.

* J.P. Morgan is serving as a lead financial advisor, and Lead Left Arranger and Goldman Sachs & Co. are acting as financial advisor and Arranger to Altaris Capital.

* Price Action: PRGO shares are up 1.04% at $40.78 in premarket trading on the last check Monday.