Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Perrigo has acquired PBM Holdings, a manufacturer of infant formula for store brand markets. Headquartered in Gordonsville, Virginia, PBM manufactures and distributes over-the-counter (OTC) store brand infant formula and baby foods sold by retail supermarkets and pharmacies in the US, Canada, Mexico and China.
Subscribe to our email newsletter
As per the terms of the agreement, Perrigo acquired 100% of the shares of PBM Holdings for $808m in cash. Pursuant to the agreement, Perrigo and PBM expect to make an election under 338(h)(10) of the Internal Revenue Code that will increase Perrigo’s tax basis in the acquired assets and which is expected to result in cash tax savings of approximately $150m to Perrigo over the next 15 years.
Perrigo has funded the transaction using approximately $193m of cash on hand and $200m borrowed under its existing debt agreements. The remaining funding came from a just completed $415m private placement note issuance with a weighted average interest rate of 5.23%.
Perrigo is a global healthcare supplier that develops, manufactures and distributes OTC and generic prescription pharmaceuticals, nutritional products, active pharmaceutical ingredients (API) and consumer products.