Perrigo remains a major producer of over the counter pharmaceuticals, and much of its operations will still be in Allegan after its shareholders rejected a hostile takeover bid from Mylan.
MiBiz Senior Writer Mark Sanchez says it’s “a pretty good victory” for Perrigo. The company urged stock holders to reject the bid from Mylan. On Friday, Mylan’s takeover attempt fell well short of the 50% of shareholders needed to sell. Sanchez says that Perrigo CEO Joe Papa insisted that he was willing to let stockholders decide whether to accept the offer.
Perrigo made the decision to be domiciled in Ireland two years ago for tax purposes. Sanchez says that leaves the company more susceptible to a takeover attempt. It’s also possible that another company could make an offer that Perrigo’s top executives find attractive.
Sanchez says the company has grown and is a potential target for other pharmaceutical firms looking to make acquisitions. While Perrigo officials urged shareholders to reject the Mylan offer, they also said that a future acquisition is possible. Sanchez says top economic development officials in Southwest Michigan are relieved that the takeover attempt did not succeed. But he says they are also bracing for future attempts to purchase the company. Sanchez says that means local officials want to provide a good business climate, and diversify their economy in case a major employer does get acquired.
Now that the Mylan attempt has failed Perrigo will remain in “acquisition mode.” Sanchez says the company is scouting for deals, and more may be announced in the next few months.