ALLEGAN – Perrigo Company announced that it has signed a definitive merger agreement and has completed the acquisition of Leeds, U.K.-based Rosemont Pharmaceuticals Ltd. for approximately $283 million in cash.
Founded in 1967, Rosemont is a specialty and generic prescription pharmaceutical company focused on the manufacturing and marketing of oral liquid formulations. Rosemont’s current portfolio consists of more than 90 products and is well positioned for future growth given its diverse product pipeline, relevant favorable demographics and export opportunities. Rosemont’s net sales during calendar year 2012 were approximately �40 million or more than $60 million with gross and operating margins similar to those of Perrigo’s Rx pharmaceuticals segment, where Rosemont’s results of operations will be included.
Key benefits of the transaction include:
Attractive Specialty Market: Rosemont’s portfolio of liquid formulations addresses a critical medicinal need within pediatrics, as well as for those patients with dysphagia (swallowing difficulties), a common malady in a growing elderly population.
Immediate Access to Oral Liquid Formulations: The transaction is aligned with Perrigo’s strategic growth objective to expand into additional liquid categories and diversified prescription medicines to further broaden its customer product portfolio.
Leadership Position in Sizeable and Growing Market: Favorable demographic drivers have been increasing demand for easier to swallow products. Rosemont’s leading position in this market today, combined with its robust pipeline portfolio and access to under-penetrated international markets, represents an exciting opportunity for future growth and European expansion.
Synergy Opportunity: The acquisition allows Perrigo to expand its U.K. portfolio while leveraging its established distribution and administrative infrastructures and long standing customer relationships.
