Latest acquisition adds speciality generics to Perrigo’s pipeline

Perrigo Company expects big things of its latest  acquisition.

The generic  drug manufacturer and distributor purchased Paddock Labs for $540 million, anticipating it will bring in $200 million in sales in its first full fiscal year. Perrigo acquired substantially all of the assets of the company in a $540 million cash transaction.

The Minneapolis-based Paddock Labs is a privately held manufacturer and marketer of generic pharmaceutical products.

No Paddock debt or cash will be assumed in the transaction. Perrigo intends to fund the transaction using approximately $80 million of cash on hand, $310 million available per the terms of its existing bank debt agreements and $150 million from a new term loan from Morgan Stanley, JPMorgan and Bank of America.

Perrigo also expects to receive a significant tax benefit generated from the acquisition of Paddock’s assets.

“This acquisition is an important next step forward in executing on our strategy to expand our specialty portfolio of generic (pharmaceutical)  products,” says Joseph C. Papa, Perrigo Chairman and CEO.

Paddock’s proven record of more than 30 years of providing quality manufacturing with great customer service also made it attractive.

The acquistion expands Perrigo’s generic pharmaceutical extended topical product offering, pipeline and scale.

Writer: Kathy Jennings
Source:  Joseph C. Papa, Perrigo Company