Mylan Offers to Buy Perrigo for Almost $29 Billion

Generic drugmaker Mylan NV announced that it has offered to acquire Dublin-based Perrigo Co. for $205 per share, or nearly $29 billion.

The announcement sent shares of Perrigo up nearly 30 percent in midday trading.

According to Mylan, the proposal was delivered to Perrigo’s Chairman Joseph C. Papa on April 6. Under the proposal, Perrigo shareholders would receive $205 in a combination of cash and Mylan stock for each Perrigo share, representing a more than 25 percent premium to the Perrigo trading price as of the close of business on Friday April 3, and a greater than 29 percent premium to Perrigo’s sixty-day average share price.

Mylan said that the transaction would create a diversified, global pharmaceutical leader with an unmatched commercial and operating platform and a unique, one-of-a-kind profile. The company believes that Perrigo and Mylan are highly complementary businesses and the combination would produce a company with critical mass in specialty brands, generics, over-the-counter (OTC) and nutritional products; a powerful commercial platform with reach across all customer channels; an exceptional high-quality operating platform; and opportunities to generate enhanced growth and deliver both companies’ shareholders and other stakeholders significant immediate and long-term value and benefits.

According to Mylan, the companies have discussed combining several times over the past few years.

“This proposal is the culmination of a number of prior discussions between Mylan and Perrigo about the compelling strategic and financial logic of this combination. This combination would result in meaningful immediate and long-term value creation, and our proposal is designed to deliver that value to shareholders and other stakeholders of both companies. We have great respect for Perrigo’s board and management team and what they have built. We look forward in the weeks ahead to working with them to capitalize on this tremendous opportunity and working together to create a unique leader with a one-of-a-kind profile in our industry,” said Mylan’s Executive Chairman Robert J. Coury.

In March, Mylan relocated to the Netherlands after buying a unit of Abbott Laboratories for $5.3 billion, and Perrigo Co moved to Ireland in 2013 in $8.6 billion a tax-inversion buyout deal with Elan Corp.

Source: Mylan NV

Last updated: 4/8/15; 12:20pm EST

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