ALLEGAN, Mich. (AP) — Perrigo Co., the largest U.S. maker of store-brand over-the-counter drugs, said Tuesday it is buying infant formula maker PBM Holdings Inc. for $808 million in cash.
PBM, based in Gordonsville, VA., is a privately held maker of over-the-counter, store brand infant formula and baby food.
Perrigo expects the buyout to add $300 million to sales during the first fiscal year, along with 10 cents per share in profit.
The deal is expected to close during the company's fiscal fourth quarter. It will fund the buyout with about $175 million in cash on hand and $300 million available under the terms of its existing debt agreements. The balance is expected to be raised through one or more sources of new debt financing. The Allegan, Mich. company received a bank bridge financing commitment for up to $350 million.