Perrigo to Buy Patheon's Mexican Business for $34 Million

By Chelsey Dulaney 

Perrigo Co., in the midst of a three-way takeover tussle, said Tuesday that it has agreed to buy the Mexican operations of Patheon for $34 million in cash.

Perrigo Chief Executive Joseph C. Papa said the deal will give Perrigo manufacturing technology for softgel products--long a desire for the company.

Durham, N.C.-based Patheon is a unit of privately-held DPx Holdings B.V. The company provides contract drug development and manufacturing services.

Perrigo makes over-the-counter cough-and-cold remedies and infant formula for chains like Wal-Mart Stores Inc., which sell the products under their own names.

Perrigo expects the deal to add immediately to its 2015 adjusted per-share earnings.

The deal comes as Perrigo rebuffs takeover attempts from Mylan NV. Last month, Mylan increased its offer to acquire Perrigo to $35.6 billion. Perrigo has thus far rejected Mylan's advances.

Meanwhile, Mylan itself has become the target of a proposed $40 billion takeover from Teva Pharmaceutical Industries Ltd.

Write to Chelsey Dulaney at [e-mail]

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