Perrigo is acquiring three Eastern European over-the-counter skincare and hair loss treatment brands from Sanofi.
WHO: Sanofi is a global biopharmaceutical company focused on human health, preventing illness with vaccines, and providing innovative treatments to fight pain and ease suffering.
Perrigo Company is a leading provider of over-the-counter health and wellness solutions that enhance individual well-being by empowering consumers to proactively prevent or treat conditions that can be self-managed.
WHY: The deal is said to grow Perrigo Company’s Consumer Self-Care International’s (CSCI) dermatology platform into growing geographies. The acquired brands are expected to leverage CSCI’s skincare competencies and full product pipeline to drive revenue synergies in the future.
IN THEIR OWN WORDS: Perrigo CEO Murray Kessler said, “We continue to prioritize opportunities that build on our self-care transformation and seek bolt-on assets that support our five growth pillars. We are pleased to add these margin enhancing assets to strengthen our international self-care portfolio and deliver value for our shareholders.”
Perrigo Executive Vice President and President of CSCI Svend Andersen commented, “Now is the right time to be more assertive within the large and growing European self-care marketplace. During the last three years, CSCI focused on improving its adjusted operating margin by 1) exiting or divesting products and businesses that were not in-line with our strategy, 2) rationalizing more than two-thirds of our CSCI SKU’s, including marginally profitable products, and 3) bringing more manufacturing in-house. Margin enhancing self-care acquisitions that fit within our product portfolio and add needed scale to certain countries are the logical next step in this strategy. The addition of these market-leading OTC brands serves as another step for Perrigo’s CSCI growth plans, expands our already robust skincare franchise and adds scale to our Eastern Europe business.”
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