Perrigo Co. is buying Virginia-based infant formula maker PBM Holdings Inc. for $808 million in cash.
Perrigo announced the deal Tuesday. The Allegan, Mich.-based company says it expects the buyout to add $300 million to sales during the first fiscal year, along with 10 cents per share in profit.
Gordonsville, Va.-based PBM is a privately held maker of over-the-counter, store brand infant formula and baby food. Perrigo is the largest U.S. maker of store-brand over-the-counter drugs.
The deal is expected to close during Perrigo's fiscal fourth quarter.