Perrigo Buys Irish Drug Firm; Plans to Shift HQ to Ireland

Posted at 8:03 AM, Jul 29, 2013
and last updated 2013-07-29 09:31:40-04

ALLEGAN COUNTY, Mich. — West Michigan pharmaceutical giant Perrigo has purchased the Irish drug firm Elan in a deal worth $8.6 billion.

According to BBC News, the combined firm will be headquartered in the Republic of Ireland, where corporation tax is 12.5 percent.  That’s compared to the 35 percent rate here in the United States.

The boards from both companies have approved the deal.

In addition to the savings from shifting headquarters, Perrigo expects to make separate tax savings of more than $150 million.

Perrigo’s current headquarters are located in Allegan County.  The company makes unbranded over-the-counter pharmaceutical products for stores to label as their own.  In this deal with Elan, they will pay $6.25 per share in cash and $10.25 per share in stock.