POTTERS BAR, England — Mylan N.V. has made an unsolicited bid to acquire Dublin, Ireland-based Perrigo Co. plc in a cash-and-stock deal valued at about $29 billion.
Mylan said Wednesday that under the proposal — delivered to Perrigo chairman, president and chief executive officer Joseph Papa — Perrigo shareholders would receive $205 in cash and Mylan stock for each Perrigo share. Mylan said that would represents a more than 25% premium to the Perrigo trading price at market close on April 3, a greater than 29% premium to Perrigo’s 60-day average share price and a more than 28% premium to Perrigo’s 90-day average share price. Perrigo shares closed at $164.71 on April 7 on the New York Stock Exchange.
According to Mylan, the addition of Perrigo would create a diversified, global pharmaceutical leader with critical mass in specialty brands, generic drugs, over-the-counter and nutritional products, as well as strong operating and commercial platforms, with reach across all customer channels.
“This proposal is the culmination of a number of prior discussions between Mylan and Perrigo about the compelling strategic and financial logic of this combination,” Mylan executive chairman Robert Coury said in a statement. “This combination would result in meaningful immediate and long-term value creation, and our proposal is designed to deliver that value to shareholders and other stakeholders of both companies. We have great respect for Perrigo’s board and management team and what they have built. We look forward in the weeks ahead to working with them to capitalize on this tremendous opportunity and working together to create a unique leader with a one-of-a-kind profile in our industry.”
Shortly after Mylan announced its bid on Wednesday, Perrigo confirmed that it received an unsolicited proposal to be acquired by Mylan.
“The board of Perrigo will meet to discuss the proposal, and a further announcement will be made when appropriate,” Perrigo said in a statement. “There can be no certainty that any offer will be made.”
Perrigo is the world’s largest manufacturer of OTC products and supplier of infant formulas for the store-brand market. The company is also a leading provider of generic extended topical prescription products and receives royalties from the Biogen multiple sclerosis drug Tysabri.
“Mylan has put Perrigo in a difficult situation, given a premium offered, and this reminds us a bit of the unsolicited offer to Allergan by Valeant,” BMO Capital Markets analyst David Maris wrote in a research note Wednesday. “Perrigo needs to either address how the offer is inadequate or why an alternative future would be better.”