ALLEGAN, Mich., June 29, 2011 /PRNewswire/ — Perrigo Company
(Nasdaq: PRGO;TASE) today announced that it continues to work to
finalize the regulatory approvals necessary to complete the
acquisition of Paddock Laboratories, Inc. (“Paddock”), a
privately-held, Minneapolis-based pharmaceutical manufacturer of
generic Rx pharmaceuticals and OTC specialty products.
Perrigo Chairman and CEO Joseph C. Papa stated, “We are looking
forward to concluding the transaction as soon as possible. As we
previously stated, we expect the transaction to be $0.25 accretive
to adjusted earnings per share in fiscal year 2012. We have
recently received a few additional questions from the Federal Trade
Commission Staff and the Parties are working collaboratively with
the Staff to answer these questions so that the FTC may conclude
its review. Since the close will now happen in our fiscal
year 2012, we expect to incur $0.20 of deal-related intangible
amortization and $0.15 of other acquisition-related costs, making
it approximately $0.10 dilutive to GAAP earnings per share.
Perrigo’s stated goal of Return on Invested Capital accretion is
expected to be achieved in fiscal 2013. This acquisition is an
important step forward in executing Perrigo’s strategy to expand
our specialty portfolio of generic Rx products. It adds incremental
scale, as well as excellent development and manufacturing
capabilities across a spectrum of niche dosage forms. It solidifies
Perrigo’s leading position in the extended topical space and
strengthens our ability to offer new products into the market.
Paddock has a proven record for quality manufacturing with great
customer service.”
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
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