Perrigo expands in Europe with acquisition of Omega Pharma

Health care company Perrigo (NYSE: PRGO) has entered into a definitive agreement to acquire Belgium-based over-the-counter firm Omega Pharma.

The agreed purchase price is 3.6 billion euros ($4.5 billion), comprised of the purchase of Omega's equity for 2.48 billion euros and the assumption of 1.1 billion euros in debt. The transaction, funded through a combination of cash, debt and equity, will enhance Perrigo's leading OTC product offering and expand its distribution through Omega's strong established platform, the company said.

Omega generated revenues of about $1.6 billion during the 12 months ended September 30, 2014, making it the fifth largest player within the European OTC market and the largest or second largest player in four individual European markets. The two companies had a combined $5.7 billion in revenue in the last 12 months, according to the Perrigo press statement. Perrigo reported $4.06 billion in sales in the 12 months ended June 28.