Perrigo Buys Company for $283 Million

Perrigo Company recently announced it has signed a definitive merger agreement and has completed the acquisition of Leeds, U.K.-based Rosemont Pharmaceuticals Ltd. for approximately $283 million in cash. Founded in 1967, Rosemont is a specialty and generic prescription pharmaceutical company focused on the manufacturing and marketing of oral liquid formulations. Rosemont’s current portfolio consists of more than 90 products and is well positioned for future growth given its diverse product pipeline, relevant favorable demographics, and export opportunities. Rosemont’s net sales during calendar year 2012 were approximately more than $60 million with gross and operating margins similar to those of Perrigo’s Rx pharmaceuticals segment, where Rosemont’s results of operations will be included. Key benefits of the transaction include:

Attractive Specialty Market: Rosemont’s portfolio of liquid formulations addresses a critical medicinal need within pediatrics, as well as for those patients with dysphagia (swallowing difficulties), a common malady in a growing elderly population.

Immediate Access to Oral Liquid Formulations: The transaction is aligned with Perrigo’s strategic growth objective to expand into additional liquid categories and diversified prescription medicines to further broaden its customer product portfolio.

Leadership Position in Sizeable and Growing Market: Favorable demographic drivers have been increasing demand for easier to swallow products. Rosemont’s leading position in this market today, combined with its robust pipeline portfolio and access to under-penetrated international markets, represents an exciting opportunity for future growth and European expansion.

Synergy Opportunity: The acquisition allows Perrigo to expand its UK portfolio while leveraging its established distribution and administrative infrastructures and long-standing customer relationships.

“We continue to focus on expanding our international footprint and view the acquisition of Rosemont as an opportunistic next step given our existing presence in the UK,” said Perrigo Chairman, President, and CEO Joseph C. Papa. “Similar to Perrigo’s position in the niche US extended topical generic prescription market, Rosemont is the No. 1 player in the niche specialty UK oral liquid formulations market. We are excited to announce the acquisition of Rosemont and welcome its more than 200 employees to the Perrigo family. This transaction represents another step forward executing our strategy to make quality healthcare products more affordable for consumers around the world.”

Rosemont is expected to be $0.08 accretive to adjusted EPS for the remainder of fiscal 2013, and approximately $0.04 to $0.07 dilutive to GAAP EPS after the inclusion of estimates for intangible amortization, transaction, and integration related expenses.

Including this acquisition, Perrigo now expects fiscal 2013 reported earnings to be between $4.67 and $4.87 per diluted share as compared to $4.18 in fiscal 2012 and fiscal 2013 adjusted earnings to be between $5.53 and $5.73 per diluted share as compared to $4.99 in fiscal 2012.

From its beginnings as a packager of generic home remedies in 1887, Allegan, Michigan-based Perrigo Company has grown to become a leading global provider of quality, affordable healthcare products. Perrigo develops, manufactures, and distributes OTC and generic Rx pharmaceuticals, infant formulas, nutritional products, pet health, dietary supplements, APIs. For more information, visit www.perrigo.com.