Perrigo Buys Consumer Self-Care Firm For $2.1B: Highlights

Perrigo Company plc PRGO will acquire HRA Pharma, a consumer self-care company, from Astorg and Goldman Sachs Asset Management. The transaction is valued at €1.8 billion, or approximately $2.1 billion in cash.
HRA has 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 consumer self-care firm and bolster Perrigo's presence in high-potential European markets.
The deal is expected to close by the end of 1H 2022 and would be accretive to Perrigo's 3% revenue growth goal.
HRA's net sales growth is expected to be in the mid-teen percentage range, with an adjusted operating margin near the 30% range.
Perrigo plans to save more than €30 million annually by 2023 from the operational synergies of the deal.
The synergies will add approximately €400 million in net sales and $1.00 in adjusted EPS in FY 2023.
Perrigo would pay the purchase price using cash on hand at closing. In addition, it may also consider new debt financing.
As of June 30, Perrigo had cash and equivalents of $317.5 million.
Price Action: PRGO shares traded 1.68% higher at $42.30 premarket on the last check Wednesday.