Ireland-based Perrigo has signed an agreement with GlaxoSmithKline Consumer Healthcare (GSK) to acquire its portfolio of over-the-counter (OTC) brands.
Perrigo will purchase the OTC portfolio in an all-cash transaction, although financial details of the deal have not been disclosed.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
GSK has divested the brands because the company had committed to sell these brands to form a consumer health joint venture between the firm and Novartis International.
Perrigo chairman, president and CEO Joseph Papa said: "This acquisition demonstrates Perrigo’s ability to execute on our ‘Base Plus Plus Plus’ strategy, in which we make selective, accretive transactions to expand our durable base business.
"We are building on the global platform we established with the Omega Pharma acquisition to capture an even greater share of the $30bn European OTC market opportunity with several well-established, complementary brands that bolster our OTC product portfolio."
Under the deal, Perrigo will acquire GSK’s NiQuitin nicotine replacement therapy (NRT) business in the European Economic Area (EEA) and Brazil, as well as Novartis’s Australian NRT business, including the Nicotinell brand.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataPerrigo will also acquire OTC brands such as Coldrex (cold and flu treatment) across the EEA and Panodil (pain relief), Nezeril (nasal decongestant), and Nasin (nasal decongestant) in Sweden.
In addition, the deal will allow Perrigo to acquire Novartis’s legacy cold sore management product in the EEA, which are marketed under the brand names Vectavir, Pencivir, Fenivir, Fenlips, and Vectatone.
The brands being acquired reported net sales of around $110m in 2014.
Subject to customary closing conditions, the deal is expected to be completed in the third quarter of this year.
