PBM, the US baby food business, is to be sold to healthcare giant Perrigo Co. for US$808m, it was announced today (23 March).
Privately-owned PBM makes private-label infant formula and baby foods for retailers in the US, Canada, Mexico and China. Perrigo said the business was an own-label pioneer in the category.
Perrigo chairman and CEO Joseph Papa said: “This acquisition positions Perrigo to expand its store brand market leadership into another important product category for our retailers. Just as Perrigo developed the over-the-counter store-brand market over the last several decades, PBM created the store brand value proposition within the highly regulated infant formula space.”
Perrigo said the acquisition, which is expected to close by the end of June, would boost its sales by $300m in the first, full fiscal year.
PBM president and CEO Paul Manning, who is to stay on with the business under Perrigo’s ownership, said the company was “very excited” about the deal.
“This merger will provide PBM with a strong base and strategic resources to continue to provide its customers with quality, affordable store branded products. Both companies have similar missions of partnering with customers to develop superior programs through R&D, marketing and supply chainefficiencies.”