Perrigo to acquire Ranir Global Holdings in $750 million all-cash deal as part of transformation strategy
Perrigo Co. said Thursday that it has reached an agreement to acquire privately-held oral care company Ranir Global Holdings LLC in a $750 million all-cash deal, or $685 million including cash tax benefits. The announcement is part of a transformation strategy that the self-care company unveiled during its investor day event. Ranir’s portfolio includes more than 300 oral care items including manual toothbrushes, floss and dentures. The deal is expected to be about 10 cents per share accretive to 2019 adjusted earnings based on a third-quarter closing. The move is part of Perrigo’s strategy to grow in self-care adjacent areas of business, according to a statement from Chief Executive Murray Kessler. Ranir has 650 employees and generated $287 million in net sales in 2018. Annual operating synergies between the two companies are expected to be about $10 million by 2021. The company also reaffirmed its plans to sell or spin off the generic pharmaceuticals business by the end of 2019 or in 2020; divest the animal health business through a $185 million cash deal with PetIQ Inc. ; investing more than $250 million in incremental capital over the next four years to expand the infant nutrition and tablet manufacturing businesses; and launching a cost savings program that will generate $100 million in annualized cost savings. Perrigo is also in discussions with several cannabidiol (CBD) companies to create products, among other innovations the company is pursuing. For 2019, Perrigo is guiding for sales between $4.6 billion and $4.7 billion, EPS between $1.24 and $1.54, and adjusted EPS of $3.65 to $3.95. The FactSet consensus is for sales of $4.7 billion and EPS of $4.14. Perrigo shares are up 27% for the year to date while the S&P 500 index has gained nearly 15%.