Full Press Release Details
UNAUDITED PRO FORMA FINANCIAL INFORMATION
(In millions, except share information)
On July 6, 2021 Perrigo Company plc ( Perrigo or the Company ) completed the previously announced divestiture of its generic RX
Pharmaceuticals business ( RX Business ) to Altaris Capital Partners, LLC ( Altaris or the Buyer ), pursuant to the terms of the Stock and Asset Purchase Agreement (the Purchase Agreement ) entered into on
March 1, 2021. Pursuant to the Purchase Agreement, Altaris acquired the RX Business for total consideration of $1.55 billion in cash, which included an adjustment to increase cash consideration by $53.3 million for the resolution of
contingent purchase obligations resulting from the acquisition of a generic topical lotion ANDA on March 8, 2021.
The unaudited pro forma condensed
consolidated financial statements are based upon the historical consolidated financial statements of Perrigo, adjusted to reflect the divestiture which met the criteria to be classified as a discontinued operation as of March 1, 2021. The
following unaudited pro forma condensed consolidated financial statements of Perrigo should be read in conjunction with the historical consolidated financial statements of Perrigo and the related notes thereto as presented in our Annual Report on
Form 10-K filed for the fiscal year ended December 31, 2020 filed with the Securities and Exchange Commission ( SEC ) on March 1, 2021 and Quarterly Report on Form 10-Q filed for the first quarter ended April 3, 2021 filed with the SEC on May 12, 2021.
understanding of the impact of the divestiture, the following unaudited pro forma condensed consolidated financial statements are presented to reflect how the divestiture might have affected the historical financial statements had the transactions
been consummated at an earlier date. The unaudited pro forma condensed consolidated statements of operations for the years ended December 31, 2020, December 31, 2019, and December 31, 2018 are presented as if the divestiture had
occurred on January 1, 2018, the beginning of the earliest period presented. The unaudited pro forma condensed consolidated balance sheet as of April 3, 2021 is presented as if the divestiture had occurred on that date. An unaudited pro
forma condensed consolidated statement of operations for the quarter ended April 3, 2021 is omitted as no pro forma adjustments are applicable, and the RX Business was previously classified as a discontinued operation in the historical
consolidated financial statements for the quarter ended April 3, 2021, which were included in our Quarterly Report on Form 10-Q for the quarter ended April 3, 2021 that was filed with the SEC on May
The unaudited pro forma condensed consolidated financial statements were prepared in accordance with Article 11 of the Regulation S-X, updated for Release No 33-10786, which was effective January 1, 2021.
Article 11 of Regulation S-X requires that pro forma financial information include the following pro forma adjustments
to the historical financial statements of the registrant as follows:
Regulation S-X permits registrants to reflect adjustments that depict synergies and dis-synergies of the acquisitions and dispositions for which pro forma effect is
being given in our disclosures as management adjustments.
The transaction accounting adjustments to reflect the sale of the RX Business in the unaudited
pro forma condensed consolidated financial statements include:
There are no autonomous entity adjustments included in the pro forma financial information. Additionally,
the unaudited pro forma condensed consolidated financial statements do not include management adjustments to reflect any potential synergies that may be achievable, or dis-synergy costs that may occur, in
connection with the divestiture of the RX Business.
The unaudited pro forma condensed consolidated financial statements are presented for informational
purposes only and is based upon estimates by Perrigo s management, which are based upon available information and certain assumptions that Perrigo s management believes are reasonable as of the date of this filing. The unaudited pro forma
consolidated financial statements are not intended to be indicative of the actual financial position or results of operations that would have been achieved had the transaction been consummated as of the periods indicated above, nor does it purport
to indicate results which may be attained in the future. Actual amounts could differ materially from these estimates.
The unaudited pro forma condensed
consolidated balance sheet as of April 3, 2021 and the unaudited pro forma condensed consolidated statements of operations for the years ended December 31, 2020, December 31, 2019, and December 31, 2018 should be read in
conjunction with the notes thereto.
Pro Forma Condensed Consolidated Balance Sheet
| Transaction Accounting Adjustments | ||||||||||||||||||||
| (in millions, except per share amounts) | Historical Perrigo (a) | Discontinued Operations of the RX Business (c) | Pro Forma Adjustments (d) | Notes | Pro Forma | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 470.9 | $ | $ | 1,420.8 | (i | ) | $ | 1,891.7 | |||||||||||
| Accounts receivable, net of allowance for credit losses of $9.1 and $6.5, respectively | 641.0 | 641.0 | ||||||||||||||||||
| Inventories | 1,136.1 | 1,136.1 | ||||||||||||||||||
| Prepaid expenses and other current assets | 251.5 | 251.5 | ||||||||||||||||||
| Current assets held for sale | 1,989.1 | (1,989.1 | ) | |||||||||||||||||
| Total current assets | 4,488.6 | (1,989.1 | ) | 1,420.8 | 3,920.3 | |||||||||||||||
| Property, plant and equipment, net | 860.0 | 860.0 | ||||||||||||||||||
| Operating lease assets | 149.7 | 149.7 | ||||||||||||||||||
| Goodwill and indefinite-lived intangible assets | 3,059.3 | 3,059.3 | ||||||||||||||||||
| Definite-lived intangible assets, net | 2,366.3 | 2,366.3 | ||||||||||||||||||
| Deferred income taxes | 57.3 | 57.3 | ||||||||||||||||||
| Non-current assets held for sale | ||||||||||||||||||||
| Other non-current assets | 343.6 | 343.6 | ||||||||||||||||||
| Total non-current assets | 6,836.2 | 6,836.2 | ||||||||||||||||||
| Total assets | $ | 11,324.8 | $ | (1,989.1 | ) | $ | 1,420.8 | $ | 10,756.5 |
| Liabilities and Shareholders Equity | ||||||||||||||||||||
| Accounts payable | $ | 430.3 | $ | $ | $ | 430.3 | ||||||||||||||
| Payroll and related taxes | 110.9 | 110.9 | ||||||||||||||||||
| Accrued customer programs | 134.5 | 134.5 | ||||||||||||||||||
| Other accrued liabilities | 267.9 | 267.9 | ||||||||||||||||||
| Accrued income taxes | 17.4 | 17.4 | ||||||||||||||||||
| Current indebtedness | 35.8 | 35.8 | ||||||||||||||||||
| Current liabilities held for sale | 450.0 | (450.0 | ) | |||||||||||||||||
| Total current liabilities | 1,446.8 | (450.0 | ) | 996.8 | ||||||||||||||||
| Long-term debt, less current portion | 3,525.3 | 3,525.3 | ||||||||||||||||||
| Deferred income taxes | 261.4 | 261.4 | ||||||||||||||||||
| Non-current liabilities held for sale | ||||||||||||||||||||
| Other non-current liabilities | 533.3 | 533.3 | ||||||||||||||||||
| Total non-current liabilities | 4,320.0 | 4,320.0 | ||||||||||||||||||
| Total liabilities | 5,766.8 | (450.0 | ) | 5,316.8 | ||||||||||||||||
| Commitments and contingencies | ||||||||||||||||||||
| Shareholders equity | ||||||||||||||||||||
| Controlling interests: | ||||||||||||||||||||
| Preferred shares, $0.0001 par value per share, 10 shares authorized | ||||||||||||||||||||
| Ordinary shares, 0.001 par value per share, 10,000 shares authorized | 7,101.3 | 7,101.3 | ||||||||||||||||||
| Accumulated other comprehensive income | 276.7 | 276.7 | ||||||||||||||||||
| Retained earnings (accumulated deficit) | (1,820.0 | ) | (1,539.1 | ) | 1,420.8 | (i | ) | (1,938.3 | ) | |||||||||||
| Total shareholders equity | 5,558.0 | (1,539.1 | ) | 1,420.8 | 5,439.7 | |||||||||||||||
| Total liabilities and shareholders equity | $ | 11,324.8 | $ | (1,989.1 | ) | $ | 1,420.8 | $ | 10,756.5 |
See accompanying Notes to Pro Forma Condensed Consolidated Financial Statements.
Pro Forma Condensed Consolidated Statement of Operations
For the year ended December 31, 2020
| Transaction Accounting Adjustments | ||||||||||||||||||||
| (in millions, except per share amounts) | Historical Perrigo (b) | Discontinued Operations of the RX Business (c) | Pro Forma Adjustments (d) | Notes | Pro Forma | |||||||||||||||
| Net sales | $ | 5,063.3 | $ | (975.1 | ) | $ | $ | 4,088.2 | ||||||||||||
| Cost of sales | 3,248.1 | (645.1 | ) | 2,603.0 | ||||||||||||||||
| Gross profit | 1,815.2 | (330.0 | ) | 1,485.2 | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Distribution | 100.4 | (15.2 | ) | 85.2 | ||||||||||||||||
| Research and development | 177.7 | (54.8 | ) | 122.9 | ||||||||||||||||
| Selling | 579.1 | (30.1 | ) | 549.0 | ||||||||||||||||
| Administration | 496.0 | (31.8 | ) | 464.2 | ||||||||||||||||
| Impairment charges | 346.8 | (346.8 | ) | 0.0 | ||||||||||||||||
| Restructuring | 3.5 | (0.3 | ) | 3.2 | ||||||||||||||||
| Other operating expense (income) | (3.7 | ) | (0.7 | ) | (4.4 | ) | ||||||||||||||
| Total operating expenses | 1,699.8 | (479.7 | ) | 1,220.1 | ||||||||||||||||
| Operating income | 115.4 | 149.7 | 265.1 | |||||||||||||||||
| Change in financial assets | 96.4 | 96.4 | ||||||||||||||||||
| Interest expense, net | 131.2 | 131.2 | ||||||||||||||||||
| Other (income) expense, net | 17.2 | (5.5 | ) | 11.7 | ||||||||||||||||
| Loss on extinguishment of debt | 20.0 | 20.0 | ||||||||||||||||||
| Income (loss) before income taxes | (149.4 | ) | 155.2 | 5.8 | ||||||||||||||||
| Income tax expense (benefit) | 13.2 | (48.2 | ) | (35.0 | ) | |||||||||||||||
| Net income (loss) | $ | (162.6 | ) | $ | 203.4 | $ | $ | 40.8 | ||||||||||||
| Earnings (loss) per share | ||||||||||||||||||||
| Basic | $ | (1.19 | ) | $ | 0.30 | |||||||||||||||
| Diluted | $ | (1.19 | ) | $ | 0.30 | |||||||||||||||
| Weighted-average shares outstanding | ||||||||||||||||||||
| Basic | 136.1 | |||||||||||||||||||
| Diluted | 136.1 |
See accompanying Notes to Pro Forma Condensed Consolidated Financial Statements.
| Perrigo Company PLC Pro Forma Condensed Consolidated Statement of Operations For the year ended December 31, 2019 (Unaudited) | ||||||||||||||||||||
| Transaction Accounting Adjustments | ||||||||||||||||||||
| (in millions, except per share amounts) | Historical Perrigo (b) | Discontinued Operations of the RX Business (c) | Pro Forma Adjustments (d) | Notes | Pro Forma | |||||||||||||||
| Net sales | $ | 4,837.4 | $ | (967.5 | ) | $ | $ | 3,869.9 | ||||||||||||
| Cost of sales | 3,064.1 | (619.6 | ) | 2,444.5 | ||||||||||||||||
| Gross profit | 1,773.3 | (347.9 | ) | 1,425.4 | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Distribution | 96.1 | (14.1 | ) | 82.0 | ||||||||||||||||
| Research and development | 187.4 | (67.3 | ) | 120.1 | ||||||||||||||||
| Selling | 567.0 | (25.1 | ) | 541.9 | ||||||||||||||||
| Administration | 503.0 | (39.2 | ) | 463.8 | ||||||||||||||||
| Impairment charges | 184.5 | (170.7 | ) | 13.8 | ||||||||||||||||
| Restructuring | 26.3 | (0.3 | ) | 26.0 | ||||||||||||||||
| Other operating expense (income) | 4.2 | (1.3 | ) | 2.9 | ||||||||||||||||
| Total operating expenses | 1,568.5 | (318.0 | ) | 1,250.5 | ||||||||||||||||
| Operating income | 204.8 | (29.9 | ) | 174.9 | ||||||||||||||||
| Change in financial assets | (22.1 | ) | (22.1 | ) | ||||||||||||||||
| Interest expense, net | 121.7 | 121.7 | ||||||||||||||||||
| Other (income) expense, net | (66.0 | ) | (7.1 | ) | (73.1 | ) | ||||||||||||||
| Loss on extinguishment of debt | 0.2 | 0.2 | ||||||||||||||||||
| Income (loss) before income taxes | 171.0 | (22.8 | ) | 148.2 | ||||||||||||||||
| Income tax expense (benefit) | 24.9 | (33.6 | ) | (8.7 | ) | |||||||||||||||
| Net income (loss) | $ | 146.1 | $ | 10.8 | $ | $ | 156.9 | |||||||||||||
| Earnings (loss) per share | ||||||||||||||||||||
| Basic | $ | 1.07 | $ | 1.15 | ||||||||||||||||
| Diluted | $ | 1.07 | $ | 1.15 | ||||||||||||||||
| Weighted-average shares outstanding | ||||||||||||||||||||
| Basic | 136.0 | |||||||||||||||||||
| Diluted | 136.5 |
See accompanying Notes to Pro Forma Condensed Consolidated Financial Statements.
Pro Forma Condensed Consolidated Statement of Operations
For the year ended December 31, 2018
| Transaction Accounting Adjustments | ||||||||||||||||||||
| (in millions, except per share amounts) | Historical Perrigo (b) | Discontinued Operations of the RX Business (c) | Pro Forma Adjustments (d) | Notes | Pro Forma | |||||||||||||||
| Net sales | $ | 4,731.7 | $ | (920.8 | ) | $ | $ | 3,810.9 | ||||||||||||
| Cost of sales | 2,900.2 | (533.9 | ) | 2,366.3 | ||||||||||||||||
| Gross profit | 1,831.5 | (386.9 | ) | 1,444.6 | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Distribution | 94.2 | (15.1 | ) | 79.1 | ||||||||||||||||
| Research and development | 218.6 | (62.5 | ) | 156.1 | ||||||||||||||||
| Selling | 595.7 | (26.3 | ) | 569.4 | ||||||||||||||||
| Administration | 435.9 | (33.9 | ) | 402.0 | ||||||||||||||||
| Impairment charges | 224.4 | 224.4 | ||||||||||||||||||
| Restructuring | 21.0 | 21.0 | ||||||||||||||||||
| Other operating expense (income) | 5.2 | (6.6 | ) | (1.4 | ) | |||||||||||||||
| Total operating expenses | 1,595.0 | (144.4 | ) | 1,450.6 | ||||||||||||||||
| Operating income | 236.5 | (242.5 | ) | (6.0 | ) | |||||||||||||||
| Change in financial assets | (188.7 | ) | (188.7 | ) | ||||||||||||||||
| Interest expense, net | 128.0 | 128.0 | ||||||||||||||||||
| Other (income) expense, net | 6.1 | (4.1 | ) | 2.0 | ||||||||||||||||
| Loss on extinguishment of debt | 0.5 | 0.5 | ||||||||||||||||||
| Income (loss) before income taxes | 290.6 | (238.4 | ) | 52.2 | ||||||||||||||||
| Income tax expense (benefit) | 159.6 | (67.0 | ) | 92.6 | ||||||||||||||||
| Net income (loss) | $ | 131.0 | (171.4 | ) | $ | $ | (40.4 | ) | ||||||||||||
| Earnings (loss) per share | ||||||||||||||||||||
| Basic | $ | 0.95 | $ | (0.29 | ) | |||||||||||||||
| Diluted | $ | 0.95 | $ | (0.29 | ) | |||||||||||||||
| Weighted-average shares outstanding | ||||||||||||||||||||
| Basic | 137.8 | |||||||||||||||||||
| Diluted | 138.3 |
See accompanying Notes to Pro Forma Condensed Consolidated Financial Statements.
Notes to Pro forma Condensed Consolidated Financial Statements
6 , 2021 Perrigo Company plc ( Perrigo or the Company ) completed the previously announced divestiture of its generic RX Pharmaceuticals business (RX Business ) to Altaris Capital Partners, LLC ( Altaris or the
Buyer ), pursuant to the terms of the Stock and Asset Purchase Agreement (the Purchase Agreement ) entered into on March 1, 2021. Pursuant to the Purchase Agreement, Altaris acquired the RX Business for total consideration
of $1.55 billion in cash, which included an adjustment to increase cash consideration by $53.3 million for the resolution of contingent purchase obligations resulting from the acquisition of a generic topical lotion ANDA on March 8,
The unaudited pro forma condensed consolidated financial statements reflect the following transaction accounting adjustments: