Perrigo Company plc (PRGO - Free Report) announced that it has acquired a leading U.S. OTC scar management brand, ScarAway, from Enaltus.
ScarAway is expected to generate revenues of approximately $10 million in 2015 out of which approximately $3 million will be generated for the rest of the year. The transaction is expected to be immediately accretive to earnings.
The company is constantly making acquisitions to expand its business and drive growth. The deal is in line with its 'Base Plus Plus Plus' strategy, focused on the expansion of the company’s durable base business by pursuing selective, accretive transactions.
Last month Perrigo acquired GlaxoSmithKline’s (GSK - Free Report) portfolio of established OTC brands. This transaction is also expected to be immediately accretive to the company’s calendar 2015 adjusted earnings per share. Net sales from the acquired brands in 2014 were approximately $110 million.
We note that earlier this year Perrigo acquired Omega Pharma in a cash-and-equity transaction valued at approximately €3.8 billion. The acquisition has placed Perrigo among the top-five global OTC health care companies by revenue and will allow the company to capture additional share of the $30 billion European OTC market.
Meanwhile, Mylan (MYL - Free Report) is looking to acquire Perrigo. Investor focus is expected to remain on Mylan-Perrigo updates in the near term.
Perrigo currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the health care sector is Novo Nordisk (NVO - Free Report) carrying a Zacks Rank #2 (Buy).
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