Perrigo announced on Monday that it has reached agreement to sell its pharmaceutical holdings in Israel, which could result in the loss of 850 jobs, Globes reported.
Perrigo said it will transfer its Generic Rx Pharmaceuticals to Altaris Capital Partners for $1.55 billion, including $1.5 billion in cash.
However, the exit from Israel may have to wait a while. In 2019, the company signed a deal promising that its Rx activities would not be moved from its Yeruham plant for at least five years. Assuming Perrigo honors its contract, the 850 jobs ought to be safe until 2024.
Globes noted that the transaction might also lead to Perrigo delisting from the Tel Aviv Stock Exchange (TASE).
Meanwhile, Perrigo CEO and president Murray S. Kessler expressed his enthusiasm:
“The sale of our Generic Rx business is the most impactful step in Perrigo’s transformation plan. This transaction establishes Perrigo as a pure-play global consumer self-care company with industry leading fundamentals. Perrigo Consumer Self-Care will have a focused portfolio with over $4 billion in revenues focused on the growing trends towards self-managed health and wellness. This transaction also provides the company with increased financial predictability and flexibility. After the transaction closes, Perrigo expects to have more than $2 billion in cash available to advance its consumer self-care strategy, preferably through prudent and revenue accretive M&A. This is an exciting day for Perrigo.”
The statement as quoted did not say anything about the threatened job losses.