Mylan makes bid for Perrigo Co.
Potters Bar, England-based Mylan N.V. proposed to acquire Perrigo Co., Dublin, in a cash-and-stock transaction that would create a diversified, global pharmaceutical leader with an unmatched commercial and operating platform and a unique, one-of-a-kind profile. The combination of these highly complementary businesses 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 significant immediate and long-term value and benefits for shareholders and the other stakeholders of both companies, Mylan said.
Under the terms of the non-binding proposal, which was delivered to Perrigo's chairman on April 6, Perrigo shareholders would receive $205 in a combination of cash and Mylan stock for each Perrigo share. The cash-and-stock offer is 25 percent more than the Perrigo trading price as of the close of business on April 3 (the last trading date prior to the date of Mylan's proposal), 29 percent more than Perrigo's 60-day average share price and 28 percent more than Perrigo's 90-day average share price, Mylan said.
"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,” said Mylan Executive Chairman Robert Coury. “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," he added. "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."