22 June 2020 - Deborah Wilkes
Perrigo is stepping up its focus on self-care by divesting Rosemont, its generic prescription pharmaceutical company based in the UK.
Murray Kessler, Perrigo’s chief executive officer and president, said the transaction was in line with the strategy of transforming Perrigo into a “consumer-focused self-care company”.
Perrigo has sold Rosemont to a UK-based private-equity firm for GBP156 million (USD195 million) in cash.
Rosemont, which generated sales of USD53 million in 2019, was part of Perrigo’s Consumer Self-Care International business.
Plans for Prescription Pharmaceuticals
Perrigo still plans to separate its Prescription Pharmaceuticals business, which reported sales of USD258 million in the first quarter of 2020.
However, Kessler said recently that the separation was unlikely to happen in the short-term. The Prescription Pharmaceuticals business was producing a lot of cash and purchase multiples in the pharmaceutical industry were depressed, commented Kessler, adding that the business would be separated when the opportunity was right.
The business generated 19% of Perrigo’s worldwide sales in the first quarter of 2020 which were up by 14% to USD1.34 billion (click here to read the News story).
The remaining 81% came from Perrigo’s two consumer self-care businesses – Consumer Self-Care Americas and Consumer Self-Care International – which reported sales up by 16% to USD1.08 billion.