January 9, 2012 03:53 AM | Press Release
Boston, MA (January 9, 2012) – Covington Associates announced today it acted as exclusive financial advisor to CanAm Care, a distributor of diabetes care products, in the sale of substantially all of its assets to Perrigo Company (Nasdaq: PRGO; TASE). The transaction is valued at approximately $36 million in cash. The acquisition is expected to be immediately accretive to adjusted earnings per share. Perrigo Company, headquartered in Allegan, MI, is a leading global healthcare supplier that develops, manufactures and distributes OTC and generic prescription (Rx) pharmaceuticals, infant formulas, nutritional products, and active pharmaceutical ingredients (API).
The assets acquired from CanAm Care include: Dex4® hypoglycemia products (tabs, liquids and gels), insulin delivery syringes and pen needles, lancing, wound care, and compression stockings.
Perrigo Chairman and CEO Joseph C. Papa stated, “This acquisition, alongside the store brand glucose monitoring meters and strips powered by ONsync™ launched in 2011 with AgaMatrix, showcases our continued commitment to providing a comprehensive line of quality, affordable healthcare to the growing diabetes community.”
Added Mr. Papa, “The Center for Disease Control estimates that one in three Americans will develop diabetes in their lifetime. Given the strong patient demand for high quality and value in the overall diabetes care market, we are very pleased to have completed this deal with CanAm Care. Perrigo will be the only full-line store brand supplier to our retail customers in the over-the-counter diabetes care market with this combined portfolio.”
Tom Cibotti, Managing Director at Covington Associates, said, “CanAm provides a great fit to Perrigo as it builds upon Perrigo’s commitment to provide a broad array of products supporting diabetes consumers.”
About CanAm Care
CanAm Care, based in Alpharetta, GA, is a privately-held distributor of diabetes care products to the retail pharmacy industry.
To learn more about CanAm Care, visit www.canamcare.com.
About Covington Associates LLC
Covington Associates is a specialty investment banking firm founded in 1991 serving business service, consumer, industrial, healthcare, and technology companies throughout the country. Focused on mergers and acquisitions, debt and equity capital raising, debt and equity restructuring, and strategic advisory assignments for middle market companies, Covington Associates has completed transactions ranging in value from $10 million to nearly $2 billion for both private and publicly traded companies.
CANAM ACQUIRED BY PERRIGO