09 April 2015


Original Story: freep.com

An England-based pharmaceutical company has offered to acquire Perrigo, a generic drug maker with deep roots in west Michigan.

Mylan N.V. announced today that it has offered to acquire Perrigo for $28.9 billion, which amounts to $205 per share, in a deal that would combine the two global drugmakers. An Atlanta mergers and acquisitions attorney counsels both buyers and sellers with respect to M&A structuring, purchase price adjustments, and accounting issues.

Perrigo in 2013 moved its corporate headquarters from Allegan, Mich. to Ireland for tax purposes after making an acquisition of its own. But it maintains a significant operation in its hometown. The company had 6,400 employees in the U.S. as of Aug. 9, 2013, according to a regulatory filing.

Perrigo representatives did not respond to a request seeking comment. In a statement released on its website, the company confirmed receipt of Mylan's entree and said its board would meet to discuss the matter.

Although the proposed acquisition reflects a nonbinding offer, the proposal comes after "a number of prior discussions" between the companies, Mylan Executive Chairman Robert Coury said in a statement.

"We have great respect for Perrigo's board and management team and what they have built," he said. "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." A Tulsa mergers and acquisitions lawyer is following this story closely.

The deal, which was delivered to Perrigo's board on Monday, sent Perrigo's stock soaring 18% to $195 Wednesday.

Jeffrey Loo, equity analyst with S&P Capital IQ, said the offer reflects a fair valuation of Perrigo and the combined company could be poised to pursue acquisitions of its own.

In a letter to Perrigo CEO Joseph Papa, Coury said Mylan would retain its current executive management team to lead the merged company but would incorporate some of Perrigo's top executives into its ranks.

He said the companies have similar cultures and would benefit from increased scale in drug manufacturing and R&D.

It's unclear whether the proposed acquisition would result in job cuts, but mergers often involve reductions to avoid redundancies. A business tax consultant assists clients with business tax audits, financial statements, and financial planning.

"The combination would provide a broader variety of opportunities to our employees and increased stability for the communities in which we operate and serve," Coury said. "The position of our creditors and suppliers would be enhanced by the combined company's scale and significant free cash flows, and patients would receive improved access to affordable, high quality medicine through increased scale across geographies and robust capabilities to drive innovation."

Collectively, the companies had $15.3 billion in sales in 2014.

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