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Perrigo To Buy Privately-held Ranir Global Holdings For $750 Mln

Perrigo Co. Plc (PRGO) said it has agreed to acquire privately-held Ranir Global Holdings LLC in a cash transaction valued at $750 million on a cash-free, debt-free basis, or about $685 million net of cash tax benefits on a present value basis.

Ranir is the largest private label oral care company globally, with a portfolio of over 300 highly customized oral care solutions including power toothbrush heads, power toothbrush handles, whitening strips, manual toothbrushes, floss, dentures and travel kits that it sells into over 50 countries worldwide.

Perrigo noted that the transaction will strengthen its transformation to a consumer-focused, self-care company. The company intends to fund the transaction with cash on hand, proceeds from the sale of its Animal Health business and short-term debt.

The proposed transaction has been unanimously approved by the respective Boards of Directors of Perrigo and Ranir. It is expected to close in the third quarter of calendar year 2019.

Ranir generated net sales of $287 million in calendar year 2018. Beyond the addition of approximately 650 employees, the acquisition will also further diversify Perrigo's revenue and cash flow.

Perrigo expects the transaction to be immediately accretive to its standalone net sales growth, adjusted operating income growth and adjusted earnings per share.

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