Perrigo Co. (NASDAQ:PRGO) has agreed to acquire assets of Sergeant's Pet Care Products Inc., a privately-held OTC animal health company, for about $285 million in cash to boost its consumer healthcare business.
The Allegan, Michigan-based maker of over-the-counter (OTC) drugs expects the deal to immediately add to earnings and accretive by 20 cents to adjusted earnings following the completion.
Perrigo's Chief Executive Joseph Papa commented that the deal allows the company to penetrate the pet care category by offering numerous flea and tick, health and well-being and consumable products to pet owners at affordable prices.
Perrigo expects Sergeant's to generate sales of over $140 million for the year ending September 30.
The deal is valued at $235 million net of certain tax benefits
The company expects to receive a significant tax benefit from the transaction. The company estimates net present value of this tax benefit to be roughly $50 million.
The deal is expected to be completed during the company's second quarter of fiscal 2013.
PRGO shares closed at $109.93 on Wednesday.