perrigo €275m unit sale to esteve healthcare

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perrigo €275m unit sale to esteve healthcare

In a significant move in the healthcare sector, Perrigo Co. PLC announced on Thursday its decision to divest its HRA Pharma Rare Diseases division to Esteve Healthcare SL for a robust sum of €275 million ($295 million). This strategic sale is guided by top-tier legal advisement from Wachtell Lipton Rosen & Katz and Clifford Chance LLP.

perrigo €275m unit sale to esteve healthcare : Initial Payment and Future Considerations

Perrigo, a key player in the New York Stock Exchange-listed pharmaceutical landscape, revealed that Esteve Healthcare would make an initial payment of €190 million. An additional amount up to €85 million is slated to follow, contingent upon the rare disease unit’s future performance.

Legal Expertise Steering the Deal

The transaction’s legal complexities are navigated by Wachtell Lipton, serving as Perrigo’s counsel, while Esteve leans on the expertise of Clifford Chance for its legal guidance.

perrigo €275m unit sale to esteve healthcare: Strategic Benefits for Perrigo

Patrick Lockwood-Taylor, CEO of Perrigo, emphasized the transaction’s strategic advantages. “This sale not only helps reduce our net leverage but also reinforces our focus on strengthening our position as a leader in the fast-moving consumer goods sector,” he stated. Lockwood-Taylor also noted that the immediate cash from the sale would enable Perrigo to significantly lower its net leverage to below 4.0x by the year’s end, enhancing earnings and reducing debt.

perrigo €275m unit sale to esteve healthcare : Overview of HRA Pharma Rare Diseases

The division being sold, HRA Pharma Rare Diseases, is renowned for its pioneering treatments in Europe and the U.S., particularly for Cushing’s syndrome—a condition characterized by excess cortisol leading to upper body fat deposits. Its notable products include Metopirone, Ketoconazole HRA, and Lysodren.

Towards Finalizing the Agreement

Perrigo has outlined a path to a definitive agreement, pending a consultation with the HRA Pharma Works Council in France. The completion of this €275 million deal with Esteve Healthcare is anticipated by September, following necessary consultations and regulatory approvals.

perrigo €275m unit sale to esteve healthcare : Financial Advisers in the Transaction

Supporting the financial intricacies of the deal, Morgan Stanley & Co. LLC is advising Perrigo, whereas Esteve has engaged Perella Weinberg Partners.