Benzinga | Sep 8, 2021 07:46AM EDT

Perrigo Buys Consumer Self-Care Firm For $2.1B: Highlights

* Perrigo Company plc (NYSE:PRGO) will acquire HRA Pharma, a consumer self-care company, from Astorg and Goldman Sachs Asset Management. The transaction is valued at (euro)1.8 billion, or approximately $2.1 billion in cash.

* HRA has three self-care brands in blister care (Compeed), women's health (ellaOne), and scar care (Mederma).

* The acquisition would complete Perrigo's transformation to a consumer self-care firm and bolster Perrigo's presence in high-potential European markets.

* The deal is expected to close by the end of 1H 2022 and would be accretive to Perrigo's 3% revenue growth goal.

* HRA's net sales growth is expected to be in the mid-teen percentage range, with an adjusted operating margin near the 30% range.

* Perrigo plans to save more than (euro)30 million annually by 2023 from the operational synergies of the deal.

* The synergies will add approximately (euro)400 million in net sales and $1.00 in adjusted EPS in FY 2023.

* Perrigo would pay the purchase price using cash on hand at closing. In addition, it may also consider new debt financing.

* As of June 30, Perrigo had cash and equivalents of $317.5 million.

* Price Action: PRGO shares traded 1.68% higher at $42.30 premarket on the last check Wednesday.