Perrigo Company has signed a binding offer to acquire HRA Pharma, a global consumer self-care company.
Dublin-based Perrigo (NYSE, TASE: PRGO) — which is building its North American headquarters on Medical Mile in downtown Grand Rapids — said earlier this month it signed the offer to acquire Héra SAS, better known as HRA Pharma, from funds affiliated with private equity firm Astorg and Goldman Sachs Asset Management.
The transaction is valued at about $2.1 billion in cash. The agreement between Perrigo and the selling shareholders would be finalized following the information and consultation process with HRA’s Works Council in France, then enabling the applicable selling shareholders to execute a put option granted by Perrigo. The proposed final transaction would close by the end of the first half of 2022, subject to the satisfaction of customary closing conditions, including regulatory approvals.
HRA is one of the fastest growing over-the-counter companies globally, with three self-care brands in blister care (Compeed), women’s health (ellaOne) and scar care (Mederma).
The acquisition would complete Perrigo’s transformation to a global consumer self-care company, bolster its presence in high-potential European markets and improve its already operational and financial profile, according to Perrigo.
“Over the past two-and-a-half years, we have been on a journey to transform Perrigo into a focused and high-performing consumer self-care company, all while delivering a successful track record of well-executed acquisitions and divestitures,” said Murray Kessler, president and CEO, Perrigo. “The acquisition of HRA would be the crowning achievement in that transformation. …
“Importantly, HRA’s focused portfolio of fast-growing self-care brands, which are market share leaders in growing categories, would be accretive to Perrigo’s 3% revenue growth goal. And HRA’s expertise in migrating products from prescription to OTC would represent even further upside. The complementary geographic footprint of HRA to that of Perrigo would allow for significant and actionable synergies. And it is the totality of these factors that makes the combination of Perrigo and HRA strategically and financially compelling. It’s literally a one-of-a-kind opportunity to simultaneously enhance our financial profile while driving even greater value for consumers, shareholders and the communities in which we work and live.”
David Wright, CEO of HRA, said he is proud of HRA’s team, which has helped position the company for an opportunity like this.
“Perrigo is the ideal partner to continue growing these brands across the globe and into attractive adjacent categories, as we build on Perrigo’s platform and sizable product portfolio,” he said. “We are excited about the opportunity to join the Perrigo team and with a shared vision and principles, deliver on the tremendous value opportunity of the combined business. As one of the world’s leading self-care companies, Perrigo is uniquely positioned to advance these brands for years to come.”