OR WAIT null SECS
Randi Hernandez was science editor at Pharmaceutical Technology from September 2014 to May 2017.
The deal between the two companies will strengthen Perrigo's presence in Europe.
Perrigo announced on Nov. 6, 2014 that it will acquire Belgium’s Omega Pharma, one of the largest over-the-counter (OTC) healthcare companies in Europe, for $4.5 billion. The deal will include Omega’s equity, valued at $3.1 billion, and the assumption of Omega’s $1.4 billion in debt. Omega makes more than 2000 treatments for cold, pain, acid reflux, allergic rhinitis, and skin health, among others.
Perrigo Chairman, President, and CEO Joseph C. Papa said in a press release that the combination of the companies "accelerates Perrigo's international growth strategy, substantially diversifies our business streams, and establishes a durable leadership position in the European OTC marketplace."
According to Perrigo, further benefits of the deal include gaining "critical mass in all key European countries" and capturing “additional share of the $30 billion European OTC market." It will also “combine Perrigo’s supply chain and operational excellence with Omega’s OTC branding and regulatory expertise.” The transaction is expected to close in the first quarter of calendar year 2015 and is said to be immediately accretive.
Perrigo already benefitted from Dublin’s lower tax rate earlier this year when it shifted its tax domicile to Ireland through its acquisition of Elan. Perrigo beat Sanofi, Actavis, Bayer, and Boehringer Ingelheim to the punch in the Omega deal, as these drug makers were also reportedly interested in taking over the OTC brand.