Perrigo Company plc announced it has reached a definitive agreement to acquire the oral care assets of High Ridge Brands for $113 million in cash.
The acquisition, which is subject to bankruptcy court approval in connection with High Ridge Brands’ chapter 11 cases, as well as other customary closing conditions, once again demonstrates Perrigo’s commitment to transform to a consumer-focused self-care company and build shareholder value.
The transaction is expected to close in the first quarter of 2020.
“The strategic acquisition of these oral care assets highlights the tremendous value of the Ranir platform, and it underscores that there are numerous bolt-on opportunities that can advance Perrigo as a global self-care leader,” said Murray S. Kessler, Perrigo President and Chief Executive Officer. “It also demonstrates that Perrigo will remain disciplined and mindful of maximizing shareholder value as it proceeds with its portfolio reconfiguration plans.”
The acquisition of these assets builds upon Perrigo’s July 2019 acquisition of Ranir, the world’s largest private label oral self-care company. Notably, the deal includes leading children’s oral care value brand, Firefly, in addition to the REACH and Dr. Fresh brands.
This transaction, in combination with Ranir’s existing children’s oral care portfolio, immediately positions the Company with the most advanced and best-selling portfolio in the value brand segment. The acquisition also provides a new platform for disruptive product innovation in the form of exclusive store and value brand programs that challenge current national brand oral care offerings.
“We are once again capitalizing on our strategic pursuit of attractive growth opportunities aimed at enabling enhanced, affordable access to innovative oral self-care products,” said Rich Sorota, incoming Executive Vice President and President, Consumer Self-Care Americas. “This acquisition provides us with well-established oral self-care brands that will contribute positively to our long-term growth objectives through new product innovation, leveraging our scale to increase distribution and expanding product reach through e-commerce. The traditional store brand landscape is evolving, and we are well positioned to provide our retail partners with exclusive branded programs and product innovations that resonate uniquely with today’s consumer.”
Sawaya Partners, LLC served as financial advisor, and Morgan, Lewis & Bockius LLP served as legal counsel to Perrigo.