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2019 Featured

Perrigo Completes Acquisition Of Ranir

Earlier this week, over-the-counter health and wellness private brand manufacturer Perrigo announced the successful completion of its acquisition of Ranir Global Holdings LLC, a private brand supplier of oral self-care products, for $750 million in cash. This transaction advances Perrigo\’s transformation to a consumer-focused, self-care company while enhancing its position in consumer self-care solutions.

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Perrigo CEO and President Murray S. Kessler commented, \”We are pleased to announce the successful completion of this bolt-on acquisition and look forward to welcoming the talented Ranir team to the Perrigo family. Our combined scale, global presence, innovation pipelines, and shared self-care strategies immediately accelerates growth and enhances our robust store brand portfolio. We look forward to providing customers and consumers with our expanded product offerings in this adjacent self-care category.\”

Kessler continued, \”As stated at our investor conference, the successful closing of the Ranir acquisition represented upside to our 2019 guidance. Based on today\’s closing we are adjusting our 2019 adjusted diluted EPS guidance range up by 10 cents.\”

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Featured Manufacturers

Perrigo To Acquire Ranir for $685 million

Late last week Perrigo announced that it has reached a definitive agreement to purchase privately-held Ranir Global Holdings LLC (\”Ranir\”) in a transaction valued at $750 million on a cash-free, debt-free basis, or approximately $685 million net of cash tax benefits on a present value basis. Ranir is the largest private brand oral care company globally, with a portfolio of 300+ highly customized oral care solutions including power toothbrush heads, power toothbrush handles, whitening strips, manual toothbrushes, floss, dentures and travel kits that it sells into over 50 countries worldwide.

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Perrigo CEO and President Murray S. Kessler commented, \”The addition of Ranir to the Perrigo family illustrates a key component of our new strategy, accelerating growth by pursuing adjacent self-care categories. I can\’t emphasize enough the opportunity we believe exists by combining these two companies that are so closely aligned. This is highlighted by their geographic proximity, scale in-store brands, leading market shares, strong and complementary customer relationships, a focus on quality, similar company cultures and a shared belief in the opportunity presented by the self-care mega-trend. We expect this strategic combination will enhance shareholder value and we are excited to provide more details at today\’s Investor Day event.\”

\”Affordable self-care has never been more important as we face ever-increasing healthcare costs,\” said Rich Sorota, CEO and President of Ranir. \”We\’ve worked hard over the past several years to execute a comprehensive growth plan to advance our purpose of \’Delivering Millions of Affordable, Healthy Smiles\’ every day. As part of this plan, we are taking the next step in our transformation, while remaining fully committed to our heritage and values. Our two companies are immensely complementary and aligned in our greater purpose and mission. Our combined talents, scale, global presence, innovation, and understanding of self-care will help support not only our local communities, but also our suppliers, retail partners and their consumers. This ultimately enables us to better pursue our purpose worldwide.\”

Transaction Rationale
The Ranir acquisition is an attractive opportunity both strategically and financially for Perrigo to accelerate its self-care vision by expanding its footprint in the key oral care category with a market leading store brand business that is led by a strong management team. As private label continues to take share from branded products in oral care, Ranir is well positioned to serve the growing demand for high-quality, customized, store brand oral care products.

Ranir is a high-growth business and a market leader in the attractive OTC oral self-care solutions category with strong private label roots, global execution capabilities and a culture of innovation, all of which are highly complementary to Perrigo. The transaction demonstrates Perrigo\’s ability to identify and execute on unique, scale opportunities in adjacent categories.

Beyond the addition of approximately 650 talented employees and a strong bench of seasoned executives with over 200 years of combined leadership experience, the acquisition will also further diversify Perrigo\’s revenue and cash flow. The transaction is expected to be immediately accretive to standalone Perrigo net sales growth, adjusted operating income growth and adjusted EPS.

Ranir generated net sales of $287 million in calendar year 2018, making it the largest player in the private label oral care market globally. Both management teams see immense potential to enhance the Ranir footprint utilizing Perrigo\’s global platform.

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Featured Manufacturers

Perrigo Announces Planned Launch of NBE for Imodium

\"\"Late last week private brand over-the-counter (OTC) manufacturer Perrigo announced that it has received final approval from the U.S. Food & Drug Administration for the store brand equivalent of Imodium® Multi-Symptom Relief (loperamide hydrochloride and simethicone tablets, 2 mg/125 mg). This product will be packaged and marketed as store brands or retailer \’own label\’ brands and will provide consumers with a high-quality, value alternative to the national brand. Perrigo is finalizing plans to launch its wholly owned store brand loperamide hydrochloride and simethicone tablets, 2 mg/125 mg, in the fourth quarter of 2018.

Imodium Multi-Symptom Relief is indicated to relieve symptoms of diarrhea plus bloating, pressure and cramps, commonly referred to as gas. Retail sales for the last 12 months were approximately $62 million as measured by IRI.

Perrigo Executive Vice President and President, Consumer Healthcare Americas, Jeff Needham stated, \”This final approval and upcoming launch is an important accomplishment for our store brand OTC business. Key new product launches such as loperamide hydrochloride and simethicone tablets, 2 mg/125 mg, provide our customers and consumers with high quality, value alternatives in important treatment categories.\”

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Featured Manufacturers

Perrigo Announces Forthcoming Retirement Of CEO John Hendrickson

\"\"Private Brand manufacturer Perrigo today announced the forthcoming retirement of Chief Executive Officer John T. Hendrickson. Perrigo is the world\’s largest manufacturer of over-the-counter (OTC) healthcare products and supplier of infant formulas for private brands.

A search committee of the Board of Directors has been created and will begin conducting a thorough process to identify Mr. Hendrickson\’s replacement.

Mr. Hendrickson will remain with the Company until his replacement is appointed, as well as up to 60 days following to ensure a smooth and successful transition. Mr. Hendrickson will continue to stand for election to Perrigo\’s Board of Directors at the Company\’s Annual General Meeting on July 20, 2017, and will step down from the Board upon the appointment of a new Chief Executive Officer.

John T. Hendrickson, Chief Executive Officer of Perrigo, stated, \”My decision to retire this year has not been an easy one, but now is the right time for me to make this change personally and professionally. I am privileged to have led Perrigo, particularly as we\’ve met the challenges we faced and stabilized the business in a time of transition. I am extraordinarily proud of what we have accomplished since I joined the Company in 1989. I am confident the Company will successfully execute on our strategic plan to return to consolidated growth in 2018 and to advance our commitment to providing Quality Affordable Healthcare Products® to customers and consumers around the world. I look forward to continuing to work alongside our tremendous leadership team until we\’ve successfully transitioned to my successor.\”

Laurie Brlas, Chairman of the Perrigo Board of Directors, commented, \”The Board is grateful to John for his 25+ years of service to the Company, and we look forward to partnering with him to continue on the outstanding progress of the past year while we work to identify his successor. John has taken meaningful action across all areas of our business: including (1) making significant organizational improvements, from Rx forecasting to implementing our cost optimization plan; (2) enhancing leadership across our organization; (3) focusing our Consumer Healthcare International business and improving margins; and (4) overseeing our strategic portfolio review, including the divestiture of several non-core assets. This dedication and focus on operational excellence has set Perrigo on a strong trajectory, as evidenced by our positive results in our first quarter. The Board and I have no doubt about the strength of Perrigo\’s business and that we will carry this momentum forward over the next few months of John\’s leadership and beyond under a new executive. We will retain an executive search firm to support our thorough search for Perrigo\’s next leader who can continue to build on our upward trajectory.\”

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Featured grocery

Store Brand Formula Launches #ShareYourFormula Sweepstakes

\"\"Every parent has a unique \”formula\” for how to juggle it all: family, work and \”me\” time. To celebrate the everyday parenting balancing act, private brand manufacturer Perrigo Nutritionals has launched the #ShareYourFormula Sweepstakes running now through April 24.

The #ShareYourFormula Sweepstakes brings these unique parenting formulas to life by using popular emoji images, giving six lucky winners the chance to bring home $1,000 and a one year supply of store brand infant formula.

To enter, fans can visit www.ShareYourFormula.com and follow the instructions to submit their unique parenting formula by using the store brand formula emoji keyboard.

\”This unique campaign celebrates the endless ways parents express and share the joys of parenthood by showcasing how every parent\’s \’formula for success\’ is different – as it should be,\” said Sandra Gordon, author of Consumer Reports Best Baby Products and the blog, Babyproductsmom.com. \”Ironically, even though every parent\’s \’formula for success\’ may be different, all infant formulas are required to meet the same FDA standards.\”

Many parents are unaware that all infant formulas marketed in the United States, both nationally advertised formula brands and store brand formulas sold at leading retailers, must meet the same federal nutrient requirements. The U.S. Food and Drug Administration (FDA) monitors all infant formula products and requires infant formula manufacturers to test product composition during production and shelf-life, to keep records on production, testing, and distribution of each batch of infant formula, and to use good manufacturing practices and quality control procedures. In addition, FDA conducts a yearly inspection of all facilities that manufacture infant formula to collect and analyze samples of infant formula.

\”When it comes to selecting an infant formula, buying an expensive, nationally advertised brand does not make sense when there are budget-friendly options that meet the same federal quality and nutrient requirements,\” added Gordon. \”According to federal regulations and the guidance of healthcare professional groups such as the American Academy of Pediatrics (AAP), infant formula must be formulated so that it can provide a baby with a sole source of nutrition.\”

Perrigo Nutritionals is the largest supplier of store brand infant formula in the world and one of only a few companies recognized by FDA for meeting FDA requirements for safety, nutrition, and quality. By switching to store brand formula, which costs up to half the price of advertised brands, parents can save up to $600 per year without compromising quality.

For official contest rules and to enter, visit www.ShareYourFormula.com.