Perrigo plunges after Mylan bid flops
Mylan's $26 billion bid to buy Perrigo has flopped, the company said. Perrigo's stock plunged 10% in advance of the opening bell.
Mylan N.V. (NASDAQ: MYL; TASE) today announced that its offer to acquire all of the issued and to be issued share capital of Perrigo Company plc (NYSE: PRGO; TASE) has lapsed.
As of 8:00 AM Eastern Time on November 13, 2015, 58,040,150 Perrigo ordinary shares, representing approximately 40 percent of outstanding Perrigo ordinary shares, were validly tendered in the offer. Accordingly, the acceptance condition to the offer, as outlined in the September 14, 2015 Offer to Exchange / Prospectus, has not been satisfied and the offer has lapsed in accordance with its terms. As the offer has lapsed, it is no longer capable of further acceptance and both Mylan and tendering Perrigo shareholders have ceased to be bound by prior acceptances.
Any Perrigo ordinary shares which have been tendered by Perrigo shareholders have not been accepted for exchange and will be promptly returned to the relevant Perrigo shareholders.
Mylan's Executive Chairman Robert J. Coury commented, "As we have said all along, Mylan viewed Perrigo as a unique and exciting opportunity, but not one that was required for the future success of our company. With one of the strongest balance sheets in our industry, including a debt to adjusted EBITDA ratio of 2x[1], as well as our well-recognized prowess in identifying attractive external assets, we are well-positioned to quickly execute on the next strategic, value-enhancing opportunities for our business, some of which we have already identified. These potential external opportunities, coupled with the numerous exciting organic growth drivers we have cultivated and the powerful and differentiated global platform we have built, ensure we will remain a leader in our industry and that we are well-positioned to deliver continued growth in the near- and long-term.
Mylan CEO Heather Bresch commented, "Mylan's focused approach to organic and inorganic growth has delivered a 27% compound annual growth rate in adjusted diluted earnings per share (EPS) for shareholders since 2008, while strategically and consistently expanding our business. Our recent financial results continue to demonstrate the power of our standalone platform, with double digit-growth in our legacy business, as well as enhanced double-digit growth from the EPD business. With favorable dynamics for our EpiPen® Auto-Injector asset, along with promising future launches, the outlook for 2016 is very strong. Further, we continue to expect that this foundational strength of our business will allow us to deliver on our target of at least $6.00 in adjusted diluted EPS in 2018. We are confident that our relentless focus on operational excellence, our exciting internal growth opportunities and our meaningful participation in ongoing industry consolidation will position us for continued success well into the future."
Neither Mylan nor, so far as the directors of Mylan are aware, any person acting in concert with Mylan held any relevant Perrigo securities immediately before commencement of the offer period and neither Mylan nor any person acting in concert with Mylan has acquired or agreed to acquire any relevant Perrigo securities during the offer period. Mylan has not received any acceptances of the offer from persons acting in concert with Mylan. Neither Mylan, nor any person acting in concert with Mylan is interested, or holds any short positions, in any relevant Perrigo securities.