L. PERRIGO PRIVATE LABEL OTC BUSINESS GOING TO GROW GROUP
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.
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