Perrigo Company buys Belgian OTC firm Omega Pharma for $4.5 bn

Ireland based Perrigo Company Plc has agreed to acquire Omega Pharma NV, one of the largest OTC healthcare companies in Europe headquartered in Nazareth (Belgium), for Euro 3.6 billion (about $4.5 billion), comprised of the purchase of Omega’s equity for Euro 2.48 billion and the assumption of Euro 1.1 billion in debt. The transaction, funded through a combination of cash, debt, and equity, will enhance Perrigo’s leading OTC product offering and expand its distribution through Omega’s strong established platform.
 
“The combination of these two great companies accelerates Perrigo’s international growth strategy, substantially diversifies our business streams and establishes a durable leadership position in the European OTC marketplace,” stated Perrigo Chairman, President and CEO Joseph Papa.
 
He added, “We believe this strategic transaction will enhance shareholder value by further strengthening our industry-leading revenue and cash flow growth profile and by expanding market opportunities. Omega brings a leading OTC product portfolio, European capabilities, and a highly experienced management team to support Perrigo’s continued growth.”
 
Papa continued, “Our strong financial performance and operational structure have enabled the continued growth and globalization of our business model with Ireland as our gateway for this expansion. Together, our combined company will have an even larger product portfolio, broader geographic reach, and enhanced scale.”
 
Marc Coucke, Founder and CEO, Omega, said, “Since our founding in 1987, we have been relentlessly executing our pharmacist-focused growth strategy across Europe. We have successfully developed a top OTC product portfolio and a leading European commercial infrastructure. Together, we will have a substantially broader product portfolio with established global platforms and commercial channels to better serve our customers and patients.”
 
Omega generated approximately $1.6 billion of revenue during the twelve months ended September 30, 2014, making it the fifth largest player within the European OTC market and the largest or second largest player in four individual European markets. Omega owns many leading cough & cold, skincare, pain relief, weight management, and gastrointestinal treatment brands, among its portfolio of roughly 2,000 products. Omega has a strong presence in both established and emerging growth economies.