Perrigo (PRGO) Completes Acquisition of Paddock Laboratories
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Perrigo Company (Nasdaq: PRGO) has closed the acquisition of Paddock Laboratories, Inc., a privately-held, Minneapolis-based pharmaceutical manufacturer of generic Rx pharmaceuticals and OTC specialty products for approximately $540 million in cash.
As previously highlighted, Perrigo expects to receive a significant tax benefit generated from the acquisition of Paddock's assets. The net present value of the tax benefit is estimated to be $95 million. Inclusive of the tax benefit, the total consideration for the acquisition is approximately $445 million.
As a result of the closing of the acquisition, Watson Pharmaceuticals, Inc. (NYSE: WPI) will acquire a portfolio of generic pharmaceutical products from Perrigo that are being divested as a result of the FTC review. The total revenues from marketed products represent less than 2% of the combined entities' total FY11 revenues, and none of the revenues from the divested pipeline product were included in Perrigo's projections for the next few fiscal years. Terms were not disclosed.
As previously highlighted, Perrigo expects to receive a significant tax benefit generated from the acquisition of Paddock's assets. The net present value of the tax benefit is estimated to be $95 million. Inclusive of the tax benefit, the total consideration for the acquisition is approximately $445 million.
As a result of the closing of the acquisition, Watson Pharmaceuticals, Inc. (NYSE: WPI) will acquire a portfolio of generic pharmaceutical products from Perrigo that are being divested as a result of the FTC review. The total revenues from marketed products represent less than 2% of the combined entities' total FY11 revenues, and none of the revenues from the divested pipeline product were included in Perrigo's projections for the next few fiscal years. Terms were not disclosed.
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