Perrigo acts to deliver shareholder value superior to Mylan offer

Ireland-incorporated Perrigo (NYSE: PRGO) is taking actions to drive substantial profit growth in 2016 and beyond, aiming to deliver shareholder value superior to the unsolicited Mylan takeover offer.

In total, the actions – which would cut about 6% of its workforce and see the sale of its vitamins business - are expected to add incremental benefits of $175 million when the full run rate of the plan is achieved.  With the inclusion of around $0.15 in earnings per share derived from $500 million in share repurchases to be completed in 2015, Perrigo expects to deliver adjusted EPS of about $9.45 in 2016. This represents a 22% increase over the calendar year 2015 EPS guidance midpoint.

Perrigo also announced a $2 billion share repurchase plan. The plan includes $500 million of repurchases that will be completed by the end of 2015, and an additional $1.5 billion in repurchases that the company expects to complete over the subsequent 24-36 months, and are expected to be funded through available liquidity. The company expects that the $500 million of share repurchases will add around $0.15 to Perrigo's 2016 adjusted earnings per share guidance.