Perrigo Provides Update on Acquisition of Paddock Labs

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ALLEGAN, Mich., June 29, 2011 /PRNewswire/ — Perrigo Company (Nasdaq: PRGO;TASE) today announced that it continues to work to finalize  the regulatory approvals necessary to complete the acquisition of Paddock Laboratories, Inc. (“Paddock”), a privately-held, Minneapolis-based pharmaceutical manufacturer of generic Rx pharmaceuticals and OTC specialty products.

Perrigo Chairman and CEO Joseph C. Papa stated, “We are looking forward to concluding the transaction as soon as possible. As we previously stated, we expect the transaction to be $0.25 accretive to adjusted earnings per share in fiscal year 2012. We have recently received a few additional questions from the Federal Trade Commission Staff and the Parties are working collaboratively with the Staff to answer these questions so that the FTC may conclude its review.  Since the close will now happen in our fiscal year 2012, we expect to incur $0.20 of deal-related intangible amortization and $0.15 of other acquisition-related costs, making it approximately $0.10 dilutive to GAAP earnings per share. Perrigo’s stated goal of Return on Invested Capital accretion is expected to be achieved in fiscal 2013. This acquisition is an important step forward in executing Perrigo’s strategy to expand our specialty portfolio of generic Rx products. It adds incremental scale, as well as excellent development and manufacturing capabilities across a spectrum of niche dosage forms. It solidifies Perrigo’s leading position in the extended topical space and strengthens our ability to offer new products into the market. Paddock has a proven record for quality manufacturing with great customer service.”

As previously highlighted, Perrigo expects to receive a significant tax benefit generated from the acquisition of Paddock’s assets. The net present value of the tax benefit is estimated to be $95 million. Inclusive of the tax benefit, the total consideration for the acquisition is approximately $445 million.

Perrigo Company is a leading global healthcare supplier that develops, manufactures and distributes OTC and generic prescription (Rx) pharmaceuticals, infant formulas, nutritional products, active pharmaceutical ingredients (API) and pharmaceutical and medical diagnostic products. The Company is the world’s largest store brand manufacturer of OTC pharmaceutical products and infant formulas. The Company’s primary markets and locations of manufacturing and logistics operations are the United States, Israel, Mexico, the United Kingdom and Australia. Visit Perrigo on the Internet (http://www.perrigo.com). 

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