Perrigo Company plc ("Perrigo") (NYSE: PRGO; TASE) today announced that it has entered into an agreement to acquire Naturwohl Pharma GmbH with its leading German dietary supplement brand, Yokebe. The brand is expected to generate approximately €30 million in full year 2015 net sales. Yokebe, the second largest dietary brand (by market share) in Germany, comes in a shake/liquid form and is marketed within the 'meal replacement' category.
Perrigo Chairman, President and CEO Joseph C. Papa commented, "Our acquisition of the margin-enhancing Yokebe brand demonstrates our continued execution on our 'Base Plus Plus Plus' strategy by building on Omega Pharma's leading OTC product portfolio and European commercial infrastructure. Coupled with our recent acquisition of well-established European brands from GlaxoSmithKline, we continue to leverage our robust balance sheet and strong global platform to execute immediately accretive deals, such as this one, that will have a multiplier effect on our growth. With Omega's pan-European distribution network, strong brand-building capabilities and exceptional management team, Perrigo is uniquely positioned to maximize the potential of these brands to capture an even greater share of the $30 billion European OTC market opportunity."
The acquisition is expected to be immediately accretive to Perrigo's calendar 2015 adjusted earnings per share and to exceed Perrigo's ROIC threshold in calendar year 2016. The transaction has been unanimously approved by the Boards of Directors of Perrigo and Naturwohl Pharma, and is expected to close in the third quarter, pending German regulatory approval and the satisfaction of customary closing conditions.