Friday, May 29, 2015

Name-brand flea-fighter buys generic Yardley rival for $160M

Perrigo pays 2.7x revenues for PetArmor maker Velcera

Name-brand flea-fighter buys generic Yardley rival for $160M

Perrigo Co., the Michigan-based animal pharma company which recently acquired Sergeant's Pet Care,, says it has agreed to pay $160 million to buy Yardley-based generic over-the-counter pet drugmaker Velcera Inc., which markets PetArmor flea and tick products.

The price is a rich 2.7x Velcera's $60 million in sales last year, which typically implies rapid growth, or a desire to forestall potential competitors.

"Velcera's product mix represents a natural extension to the Sergeant's portfolio we acquired last October," Perrigo boss Joseph Papa said in a statement. Velcera raised $33 million in a 2007 stock sale. It has been trading, like its products, over-the-counter.

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PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

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Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano