Perrigo Buys Irish Biotech Firm Elan Corporation For $8.6 billion

elanAllegan, Michigan based Private Brand drug manufacturer Perrigo will buy Irish biotech company Elan Corporation for $8.6 billion, in a cash and stock deal, the companies announced on Monday, in a joint statement.

PerrigoLogoPerrigo will pay $6.25 a share in cash and 0.07636 shares of Perrigo — the proposed new company combining Perrigo and Elan — valued at $10, for each Elan share. The offer price is at a premium of about 10.5% over Elan’s closing price on Friday.

The deal is expected to help Perrigo save $150 million in taxes and operating expenses, as it will allow the company to move its headquarters to Ireland – where Elan is based — which has a low corporate tax rate of 10.5%, compared to the 30% tax rate in the U.S.

“Certain of these synergies result from the elimination of redundant public company costs while optimizing back-office support and the global R&D functions. Additionally, tax savings are expected to arise from the combined company being incorporated in Ireland with organizational, operations and capitalization structures that will enable the combined company to more efficiently manage its global cash and treasury operations,” Joseph C. Papa, Perrigo Chairman and CEO, said in a news release.


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Christopher Durham
Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.