Perrigo to acquire French OTC company HRA Pharma for $2.1bn

Perrigo Company plc has agreed to acquire Héra SAS (HRA Pharma), a French consumer self-care company, from funds affiliated with Astorg and Goldman Sachs Asset Management for around $2.1 billion in cash.

HRA Pharma is an over-the-counter (OTC) company, which owns specialist blister plaster brand Compeed, ellaOne emergency contraception brand, and Mederma scar care cream.

Perrigo said that the acquisition will complete its transformation to a global major in consumer self-care, and strengthen its footprint in high-potential European markets. The Irish pharma company also stated that the acquisition of HRA Pharma will significantly enhance its operational and financial profile.

Commenting on Perrigo acquisition of HRA Pharma, Murray S. Kessler — CEO and President of Perrigo, said: “Over the last two and one-half years, we have been on a journey to transform Perrigo into a focused and high-performing consumer self-care company, all while delivering a successful track record of well executed acquisitions and divestitures.

“The acquisition of HRA would be the crowning achievement in that transformation. With the addition of HRA and its talented leadership team, Perrigo would be a consumer self-care global leader that is poised to deliver top tier net sales growth and double-digit EPS growth in the near-term while concurrently expanding margins.”

Apart from Compeed, ellaOne, and Mederma, HRA Pharma has a rare disease portfolio of three major prescription products — Metopirone, Ketoconazole HRA, and Lysodren, that make up nearly 15% of its net sales.

David Wright — CEO of HRA Pharma, commenting on Perrigo acquisition of HRA Pharma, said: “Perrigo is the ideal partner to continue growing these brands across the globe and into attractive adjacent categories, as we build on Perrigo’s platform and sizable product portfolio.

“We are excited about the opportunity to join the Perrigo team and with a shared vision and principles, deliver on the tremendous value opportunity of the combined business. As one of the world’s leading self-care companies, Perrigo is uniquely positioned to advance these brands for years to come.”

The deal, which is subject to regulatory approvals and other customary closing conditions, is expected to be wrapped up by the end of the first half of next year.

Earlier this year, Perrigo agreed to sell its prescription pharma (Rx) business to Altaris Capital Partners for nearly $1.55 billion.