Perrigo makes loss on generics unit sale for $195m

Perrigo CEO Murray Kessler Photo: Perrigo PR

Perrigo has sold UK liquid prescription medicines unit Rosemont Pharmaceuticals to a UK private equity fund.

As part of the self-care consumer-focused strategy that it announced two years ago, Perrigo Company (NYSE:PRGO; TASE:PRGO) has sold its UK liquid prescription medicines unit Rosemont Pharmaceuticals business to a UK private equity firm for £156 million ($195 million) in cash. The transaction was signed and closed on the same day. Perrigo made a loss on the sale, having acquired the company in 2013 for $283 million.

In 2019, Rosemont contributed revenue of $53 million and $0.12 earnings per share.

Perrigo CEO and president Murray Kessler said, "We are pleased to have reached an agreement to divest Perrigo's non-core Rosemont business and look forward to ensuring a seamless transition. This divestiture, which was accomplished at an attractive ten times adjusted operating income multiple, is an example of Perrigo's commitment to our transformation to a consumer-focused self-care company while remaining good stewards of shareholder value."

Published by Globes, Israel business news - en.globes.co.il - on June 21, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Perrigo CEO Murray Kessler Photo: Perrigo PR
Perrigo CEO Murray Kessler Photo: Perrigo PR
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