ALLEGAN — Perrigo Co. plc plans to buy the oral product line from Stamford, Conn.-based High Ridge Brands Inc., which filed for bankruptcy in December.
The $113 million cash deal for the oral care products made by Stamford, Conn.-based High Ridge Brands Inc. that Perrigo announced this morning follows a bidding process and auction held Feb. 20 in U.S. Bankruptcy Court in Delaware. The acquisition requires the approval of the Bankruptcy Court, which has a hearing scheduled for Wednesday this week, and could close in the first quarter.
The acquisition would contribute more than $100 million in net sales to Perrigo in the first full year and build on the July 2019 acquisition of Grand Rapids-based Ranir Global Holdings LLC for $750 million.
“The strategic acquisition of these oral care assets highlights the tremendous value of the Ranir platform, and it underscores that there are numerous bolt-on opportunities that can advance Perrigo as a global self-care leader,” Perrigo President and CEO Murray Kessler said in a statement. “It also demonstrates that Perrigo will remain disciplined and mindful of maximizing shareholder value as it proceeds with its portfolio reconfiguration plans.”
The Dec. 18, 2019, bankruptcy filing for High Ridge Brands, which also produces hair and skin care products, indicated it had assets of $100 to $500 million, and $500 million to $1 billion in liabilities. A list of the top 50 largest unsecured outside claims by creditors and bondholders alone totaled $236.9 million.