L. PERRIGO PRIVATE LABEL OTC BUSINESS GOING TO GROW GROUP
Executive Summary
L. PERRIGO PRIVATE LABEL OTC BUSINESS GOING TO GROW GROUP, a NYC-based mfr. of private label household cleaning and industrial maintenance products. The agreement to purchase Perrigo for a combination of $34 mil. in cash and notes and an additional $11.2 mil. in non-convertible preferred stock was announced Jan. 2. Perrigo produces a full line of private label OTC drugs, vitamins and H&BAs, with clients such as Rite Aid, Kmart, Safeway and Target. Perrigo's products and market distribution are expected to "complement and substantially augment" Grow's private label business, Grow Group President Russell Banks said. With the acquisition of Perrigo, Grow's consumer group will become "the largest segment of our operation," with annualized sales of approximately $175 mil., he added. The firm characterizes itself as "one of the nation's largest producers of specialty chemicals, coatings and paints." Grow Group noted that funds for the acquisition of Perrigo are expected to be generated by a public offering of senior subordinated notes and convertible subordinated debentures filed with the Securities and Exchange Commission on Dec. 31. Following the acquisition, which Grow expects to be completed in mid-February, Perrigo will continue to operate autonomously. Grow reported earnings of $8.3 mil. on sales of $275 mil. in the fiscal year ended June 30. Perrigo's sales for the year ended May 31 were $126 mil., while net earnings were $3.7 mil.
You may also be interested in...
Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data
Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011
FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance
FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials
Shire Hopes To Sow Future Deals With $50M Venture Fund
Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth