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Perrigo Company To Acquire Elan Corporation, Plc For US$8.6 Billion, Establishing Premier Global Healthcare Company

Immediately after the closing of the transaction, Perrigo shareholders are expected to own approximately 71% of the combined company while Elan shareholders are expected to own approximately 29%. Shares of New Perrigo will be registered with the U.S. Securities and Exchange Commission (the “SEC”) and are expected to trade on the New York Stock Exchange and the Tel Aviv Stock Exchange.

Key benefits of the transaction for Perrigo and Elan:
  • Platform for International Expansion
    • Operating base in Ireland to serve as a business hub and gateway for expansion into international markets
    • Scale, resources and corporate structure to drive strategic initiatives and investments
    • Differentiated business model well-positioned to continue growth in core markets and to expand to other international markets
  • Strong Business and Financial Profile
    • Highly diversified revenue stream
    • Strong pro forma cash flows to continue to support an investment grade credit profile
    • Robust and sustainable growth outlook
  • Financially Compelling
    • Enhances revenue, adjusted EBITDA and earnings growth rates and expands margins
    • Immediately accretive to Perrigo adjusted earnings per share in 2014
    • Meaningful synergy opportunities
  • Benefits to Elan Shareholders
    • Upfront value unlocked via the cash consideration, while Elan Shareholders will also have the opportunity to participate in the benefits of New Perrigo
    • Perrigo management team with strong track record of successfully acquiring and integrating diverse businesses

The combination is expected to result in more than US$150 million of recurring after-tax annual operating expense and tax savings. Certain of these synergies result from the elimination of redundant public company costs while optimizing back-office support and the global R&D functions. Additionally, tax savings are expected to arise from the combined company being incorporated in Ireland with organizational, operations and capitalization structures that will enable the combined company to more efficiently manage its global cash and treasury operations. 2

Mr. Papa concluded, “We are very impressed with the accomplishments of Elan’s leadership team. Over the past decades, they have built a company that delivers high quality healthcare products with a focus on innovations in science to fill significant unmet medical needs around the world. This strategic transaction aligns with Perrigo’s acquisition strategy and our previously-stated intentions to grow our international business. We expect New Perrigo to create tremendous value for our shareholders for years to come.”

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