- Quality, Affordable Healthcare with High Barriers-to-Entry: Sergeant's primary OTC channel flea and tick products contain the same active ingredients as the leading veterinary channel national brands, but offer consumers and retailers a compelling value proposition. In addition to regulatory hurdles (e.g., Environmental Protection Agency, Food and Drug Administration compliance), intellectual property portfolios, active-ingredient sourcing and channel access create barriers-to-entry.
- Immediate Access to Adjacent Category: The transaction is aligned with the Company's strategic growth objective to expand into adjacent categories where Perrigo can drive enhanced product offerings and value for its retail customers.
- Entry into Sizeable and Growing Self-pay Market: Pet Care is an $8 billion industry that has shown consistent growth through economic cycles. Consumers are treating their pets like members of the family and are spending a higher proportion of discretionary income on pet care and well-being.
- Revenue Synergies: Sergeant's acquisition allows Perrigo to add products to its current offerings and leverage established distribution infrastructure and customer relationships.
- Compelling Value Consistent with Stated Acquisition Criteria: The transaction is expected to be immediately accretive to adjusted earnings per share. The transaction is expected to be approximately $0.12 accretive to GAAP earnings per share and, excluding $0.08 of estimated deal-related expenses and intangible amortization, $0.20 accretive to adjusted earnings per share in the first full fiscal year post-closing. Perrigo's stated goal of Return on Invested Capital accretion is expected to be achieved in fiscal 2014.
Perrigo Company To Acquire Assets Of Sergeant's Pet Care Products, Inc., For $285 Million
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