Goldman Sachs Asset Management and Astorg sell HRA Pharma to Perrigo in $2.1bn deal

Sep 9, 2021 | ITPEC, News

Investment firms Astorg and Goldman Sachs Asset Management have sold HRA Pharma to Perrigo Company in a deal valued at $2.13bn.

The all-cash deal comes months after Perrigo sold its underperforming generics drugs business to Altaris Capital Partners LLC for $1.55bn to focus on its core consumer healthcare business.

Paris-based HRA Pharma offers the Compeed brand of products to treat blisters and cracked heels, Mederma creams and gels to reduce scars and cold sores as well as pregnancy prevention pill ellaOne, which is available without a prescription in 59 countries.

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HRA Pharma sales, like those of Perrigo, were hit due to the COVID-19 pandemic last year, as people avoided stepping out of their homes, but demand is now rebounding, Perrigo Chief Executive Officer Murray Kessler said on a call with analysts.

All three HRA leading brands will drive growth for Perrigo, with Compeed expanding into burns and cold sores care and ellaOne entering into new markets outside of Europe, Kessler added.

Perrigo’s consumer healthcare unit offers a range of health and wellness products in the North American and European markets.

The company said the deal will add about $472.56m to its net sales and $1 to its adjusted earnings per share in fiscal year 2023.

The acquisition will also help Perrigo expand its footprint in key underpenetrated European markets, the company said.

Centerview Partners was Perrigo’s financial adviser on the deal, which is expected to close by the end of the first half of 2022.

Source: Reuters

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