Perrigo Adds To Pet Care Portfolio
Perrigo, the largest manufacturer of over-the-counter drugs for the private label market, has extended its reach into the pet healthcare category with a $160 million purchase of Velcera.
It’s the second pet healthcare purchase for Perrigo in four months, following its $285 million deal for Sergeant’s Pet Care Products.
Velcera develops, manufactures and markets OTC companion animal healthcare products. Its FidoPharm subsidiary has products including PetArmor flea and tick preventive, which has the same ingredient as Frontline’s Top Spot.
“The extraordinary synergies between Velcera and Perrigo means that even more pet owners can receive best-in-class pet health products, including PetArmor, the brand they know and trust to deliver veterinarian quality protection for their pets,” Velcera CEO Dennis Steadman said in a news release.
“We are very pleased to take this next step in expanding our companion animal healthcare business,” Perrigo CEO Joseph Papa said in a separate release. “Velcera’s product mix represents a natural extension to the Sergeant’s portfolio we acquired last October. … Additionally, we see an excellent opportunity to leverage our existing commercial, manufacturing and distribution capabilities, and our customer base, as we aim to make quality, affordable pet care products available to consumers everywhere.”
The deal is expected to close during 2013.
Perrigo also announced fiscal second quarter earnings results, reporting an all-time record for quarterly revenue as well as record second quarter adjusted earnings and operating cash flow. For the quarter, net sales rose 5.3 percent to $883 million, while profits rose 13.9 percent to $128 million, or $1.36 a share.