Perrigo buys international OTC portfolio from GSK

DUBLIN — Perrigo on Tuesday acquired a portfolio of OTC brands from GlaxoSmithKline Consumer Healthcare, in connection with GSK's commitments to the European Commission and other regulators to divest these businesses because of its consumer health joint venture with Novartis. 

 

Terms of the all-cash transaction were not disclosed.

 

Included in the deal are GSK's NiQuitin nicotine replacement therapy business, primarily in the European Economic Area and Brazil, and Novartis's legacy Australian NRT business, including the Nicotinell brand; several assorted OTC brands including Coldrex (cold and flu treatment) across the EEA, and Panodil (pain relief), Nezeril (nasal decongestant) and Nasin (nasal decongestant) in Sweden; and Novartis' legacy cold sore management products primarily in the EEA, marketed under the brand names Vectavir, Pencivir, Fenivir, Fenlips and Vectatone.

 

"This acquisition demonstrates Perrigo's ability to execute on our 'Base Plus Plus Plus' strategy, in which we make selective, accretive transactions to expand our durable base business," stated Joseph Papa, Perrigo president and CEO. "We are building on the global platform we established with the Omega Pharma acquisition to capture an even greater share of the $30 billion European OTC market opportunity with several well-established, complementary brands that bolster our OTC product portfolio. We are committed to making investments in these brands to grow their market positions in key geographies, by following Omega Pharma's proven approach to brand building."

 

"Perrigo is uniquely positioned to maximize the potential of these brands by leveraging Omega Pharma's leading European commercial infrastructure, pan-European distribution network, strong brand-building capabilities and exceptional management team. This announcement comes on the heels of our recent acquisition of European OTC dermatological product, Vitasil, which recently closed. With our global platform in place and our robust balance sheet, we are ideally positioned to execute immediately accretive deals, such as this one, that will have a multiplier effect on our growth."  

 

The transaction has been unanimously approved by the boards of directors of Perrigo and GSK, and is expected to close in the third quarter of 2015, pending approval by the European Commission, the Australian Competition and Consumer Commission, and Brazil's Council for Economic Defense, as well as the satisfaction of customary closing conditions.