DUBLIN, Ireland — The board of directors of Perrigo Co. plc has unanimously rejected Mylan N.V.’s unsolicited bid to buy the company.
Perrigo said late Tuesday that Mylan’s $205-per-share offer earlier this month, a deal estimated at about $29 billion, undervalues the company and its growth prospects.
“The board believes the proposal substantially undervalues Perrigo and its growth prospects and that continued execution by the management team against our global growth strategy will deliver superior shareholder value,” Perrigo chairman, president and chief executive officer Joseph Papa said in a statement. “Perrigo has a long history of driving above market shareholder value through consistent growth with a focus on profitability and operational excellence, which is reflected in our organic net sales CAGR goal of 5% to 10% for the next three years. With the acquisition of Omega Pharma, we are a top five global OTC company with a diversified portfolio, a leading market position in key franchises and a strong and established global distribution platform. We will continue to capitalize on our durable competitive position by expanding our international platform organically and through future synergistic deals. These actions will advance our leadership in the global OTC marketplace.”
Perrigo’s board advised the company’s shareholders to take no action on Mylan’s bid.
“Perrigo’s board believes that the company has a strong independent future and is well-positioned to continue to drive superior growth and shareholder value and provide high ‘Quality Affordable Healthcare Products’ to customers and consumers globally,” Papa added. “The board’s confidence is built upon the company’s durable competitive position, compelling growth strategy, and strong and consistent track record of delivering results for shareholders under its experienced management team. Since fiscal 2007, we have delivered compound annual sales growth of 16%, increased adjusted operating margin by over 1,600 basis points and generated total shareholder returns of over 970%.”
Perrigo’s rejection of Mylan’s proposal may have an impact on another acquisition proposal. Earlier on Tuesday, Mylan received an offer from Teva Pharmaceutical Industries Ltd. to be acquired a cash-and-stock deal valued at about $40 billion. In making its bid, Teva called on Mylan to forgo its proposal to buy Perrigo.