Drug company making $113M oral care acquisition
A drug manufacturer with a major West Michigan presence is acquiring the oral care assets of a company that is in bankruptcy proceedings.
Dublin, Ireland-based Perrigo — which has its North American headquarters in Allegan — said Monday that it has reached a definitive agreement to acquire the oral care assets of High Ridge Brands for $113 million in cash.
The transaction is expected to close in the first quarter of 2020.
The acquisition, which is subject to bankruptcy court approval in connection with High Ridge Brands’ ongoing chapter 11 cases, as well as other customary closing conditions, aligns with Perrigo’s recent efforts to transition to a consumer-focused self-care business, the company said.
The acquisition builds on Perrigo’s July 2019 acquisition of Ranir, a private label oral self-care company.
“The strategic acquisition of these oral care assets highlights the tremendous value of the Ranir platform, and it underscores that there are numerous bolt-on opportunities that can advance Perrigo as a global self-care leader,” said Murray Kessler, president and CEO of Perrigo.
The High Ridge Brands portfolio acquisition includes the children’s oral care value brand, Firefly, in addition to the Reach and Dr. Fresh brands.
“This acquisition provides us with well-established oral self-care brands that will contribute positively to our long-term growth objectives through new product innovation, leveraging our scale to increase distribution and expanding product reach through e-commerce,” said Rich Sorota, former president and CEO of Ranir and incoming executive vice president and president, consumer self-care Americas, for Perrigo.
New York-based Sawaya Partners served as financial adviser, and Philadelphia-based Morgan, Lewis & Bockius served as legal counsel to Perrigo.
Perrigo
Perrigo (NYSE, TASE: PRGO) is a manufacturer of private label over-the-counter and generic prescription pharmaceuticals, as well as health and wellness products.
