Perrigo expands Mexican unit with $34M deal; company has rejected $34.1B overture from Mylan

NEW YORK, N.Y. – Irish drugmaker Perrigo said Tuesday it bought the Mexican operations of Pantheon Pharmaceuticals, expanding its business in that country and giving it the ability to manufacture drugs in soft gel form.

Perrigo said it paid $34 million for the Pantheon business. It already has 10 manufacturing facilities and about 1,200 employees in Mexico.

Perrigo Co. makes over-the-counter medicines, generic drugs, nutritional products and infant formulas, often sold under store brand names. The company reported $1.05 billion in revenue in its latest fiscal quarter. Most of its sales come from the U.S.

The move comes with Perrigo the target of a potential acquisition. Generic drugmaker Mylan NV wants to buy Perrigo and has made two offers for the company. The second was worth $34.1 billion in cash and stock, which Mylan said valued Perrigo at $232.23 per share. Perrigo has rejected both offers, saying they’re too low and not worth as much as Mylan says.

Mylan says buying Perrigo would help it enter new markets in Mexico, Israel and Russia.

Mylan, meanwhile, is trying to fend off an acquisition by larger competitor Teva Pharmaceutical Industries Ltd. Teva has offered to buy Mylan for $40.1 billion, but Mylan has rejected that offer.

Shares of Perrigo rose 92 cents to $194.50 in afternoon trading.