Perrigo acquires infant formula manufacturer PBM Holdings for $808 million

Perrigo Company on March 23 announced that it has signed a definitive merger agreement to acquire PBM Holdings Inc., the leading store-brand infant formula manufacturer, for approximately $808 million in cash. Based in Gordonsville, Va., privately-held PBM manufactures and distributes over-the-counter (OTC) store brand infant formula and baby foods sold by leading retailers in the mass, club, grocery and drug channels in the United States, Canada, Mexico and China. The acquisition is expected to close in the company's fiscal 2010 fourth quarter pending regulatory approval.

Perrigo chairman and CEO Joseph C. Papa stated, "This acquisition positions Perrigo to expand its store brand market leadership into another important product category for our retailers. Just as Perrigo developed the OTC store brand market over the last several decades, PBM created the store brand value proposition within the highly regulated infant formula space. We believe that PBM's mission to provide families with high quality, state-of-the-art formulas at sensible prices complements perfectly Perrigo's mission to deliver quality, affordable healthcare to consumers."

"We are very excited about joining Perrigo," said Paul B. Manning, president and CEO of PBM. "This merger will provide PBM with a strong base and strategic resources to continue to provide its customers with quality, affordable store branded products. Both companies have similar missions of partnering with customers to develop superior programs through R&D, marketing and supply chain efficiencies. We are confident that the combination of our entrepreneurial team and innovative, quality products with Perrigo's 123-year-old, private-label, global infrastructure will create operating, innovation and distribution opportunities for both companies."