Mylan Formalizes Offer to Acquire Perrigo
Mylan formally launched a proposal to acquire Perrigo on April 24, 2015, following the company’s announcement earlier in April 2015 that it had made a non-binding proposal to acquire Perrigo, a Dublin, Ireland-headquartered company specializing in specialty, generic, and over-the-counter products for $28.9 billion, a proposal that Perrigo formally rejected on April 21, 2015.
Under Irish Takeover Rules, Mylan issued a Rule 2.5 announcement setting forth its legally-binding commitment to commence an offer for the entire issued and to be issued share capital of Perrigo. Under the terms of the offer announced, Perrigo shareholders will receive $60 in cash and 2.2 Mylan ordinary shares for each Perrigo ordinary share. If the deal were to proceed, Mylan shareholders would own approximately 61.8% of the outstanding Mylan ordinary shares on a fully diluted basis, and former Perrigo shareholders will own approximately 38.2% of the outstanding Mylan ordinary shares on a fully diluted basis.
Mylan expects the combination will result in at least $800 million of annual pre-tax operational synergies by the end of year four following the consummation of the offer. Mylan’s Executive Chairman Robert J. Coury commented in a company statement: “Mylan has today begun a legally-binding process under the Irish Takeover Rules to commence its offer for Perrigo, demonstrating our commitment to making this compelling combination a reality.”
Perrigo had not responded to the formal offer as of mid-day on April 27, 2015 although it did issue a statement on April 21, 2015, rejecting Mylan’s initial non-binding proposal to acquire the company. In a separate transaction, Teva Pharmaceuticals Industries then made an approximate $40 billion proposal to acquire Mylan, a move that Mylan formally rejected on April 27, 2015.