Perrigo Company announced today that it has signed a definitive agreement to acquire substantially all of the assets of Paddock Laboratories, Inc., a privately-held, Minneapolis-based manufacturer and marketer of generic pharmaceutical products, for approximately $540 million in cash.
The acquisition is expected to close during the company's fiscal 2011 fourth quarter pending regulatory approval. "This acquisition is an important next step forward in executing on our strategy to expand our specialty portfolio of generic Rx products,” said Perrigo Chairman and CEO Joseph C. Papa.
“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. And importantly, Paddock has a proven record for quality manufacturing with great customer service."
The transaction is expected to add more than $200 million in annual sales with over 35 products and a strong product pipeline, with more than 25 ANDAs pending approval with the US Food and Drug Administration.
Allegan, Michigan-based Perrigo expects to receive a significant tax benefit from the acquisition of Paddock's assets, which could amount to as much as $95 million over the next 15 years.
