Private Brand HBC manufacturer Perrigo announced that it has signed a definitive purchase agreement to acquire Orion Laboratories Pty, Ltd. for approximately $48 million in cash. This is the second significant acquisition by the company in the last few weeks as Perrigo announced that it would buy privately held PBM Holdings Inc, a Private Brand baby food and formula manufacturer, for about $808 million in cash.
Based in Perth, Western Australia, privately-held Orion is a leading supplier of over-the-counter (OTC) store brand pharmaceutical products in Australia and New Zealand. In addition, the company manufactures and distributes pharmaceutical products supplied to hospitals in Australia. The acquisition is expected to add more than $30 million in sales annually and be accretive to earnings in the first year.
Perrigo Chairman and CEO Joseph C. Papa stated, “The acquisition of Orion expands our global presence, complements our existing business and increases value for our shareholders. By leveraging Orion’s product pipeline and local marketing and distribution expertise, Perrigo is expanding its ability to meet the world’s growing need for quality, affordable healthcare.”
The Company also confirmed that it closed its previously announced sale of the Israeli Consumer Products business to Emilia Group on February 26th, 2010. The proceeds from this divestiture will be used to fund the strategic acquisition of Orion Laboratories.