Perrigo to sell generic drugs business for $1.55 billion

Perrigo Company on Monday posted quarterly earnings below estimates and said it would sell its underperforming generic drugs business for $1.55 billion, as the consumer healthcare products company sharpens focus on its core business.

The sale, to private equity firm Altaris Capital Partners, is expected to close by the end of the third quarter, Perrigo said.

“After the transaction closes, Perrigo expects to have more than $2 billion in cash available to advance its consumer self-care strategy, preferably through prudent and revenue accretive M&A,” Chief Executive Officer Murray Kessler said.

Lower sales of Perrigo’s cold and cough products drove it to a net loss of $162.6 million in the fourth quarter versus a $146.1 million profit last year.

It reported adjusted earnings per share of 93 cents, missing analyst estimates of $1 per share, according to Refinitiv IBES data.

Centerview is serving as financial advisor to Perrigo on the transaction.

Source: Reuters