ALLEGAN, Mich. (AP) — Perrigo, a maker of store brand over-the-counter drugs and infant formulas, is buying animal healthcare company Sergeant's Pet Care Products Inc. for $285 million as it diversifies into the pet care industry.
"This acquisition allows us to penetrate the pet care category by offering numerous flea and tick, health and well-being and consumable products to pet owners at affordable prices," Perrigo Chairman and CEO Joseph Papa said in a statement.
Sergeant's which is privately held, is based in Omaha, Neb.
Perrigo, which plans to fund the deal with available cash, said Thursday that it currently expects a tax benefit of about $50 million as a result of the acquisition. The company anticipates the deal will add about 12 cents per share to its earnings and 20 cents per share to adjusted earnings in the first full fiscal year after the transaction is complete.
The buyout is expected to close in Perrigo's fiscal second quarter.
Last month Perrigo reported that its fourth-quarter net income climbed 25 percent as new products and sales from acquisitions helped revenue.
Shares of Perrigo Co., which is based in Allegan, Mich., fell 28 cents to $109.65 in premarket trading on Thursday. Its shares rose to a 52-week high of $119.29 in early July and traded as low as $87.01 last November.