Gordonsville-based PBM Holdings, which makes infant formula and other products, will be purchased for $808 million.
Michigan-based Perrigo Co. announced yesterday that it is buying PBM in an all-cash transaction. Perrigo, a global health care company that trades on the Nasdaq, says the acquisition will add about $300 million of sales in its first full fiscal year.
The deal won't affect PBM's local operation or employment base, said company spokesman Joe Shields. PBM will continue "business as usual" as a wholly owned subsidiary of Perrigo, which is also involved in the private label business.
"It's really a good match," Shields said.
PBM makes infant formula that's sold as store brands at retailers including Walmart, Target, CVS, Kroger and Walgreens. It also makes other baby foods and nutritional products, pharmaceuticals and baby-bottle liners. Its products are also sold in Canada, Mexico and China.
The store-brand business has accelerated of late as people look to save money on those products over pricier brands. That has led to solid growth at PBM.
PBM's corporate headquarters have been in Gordonsville since 1997. The company is credited with helping revitalize the Orange County town. About 140 people work at the Gordonsville operation and will continue to do so, Shields said. The company also has offices in Ohio, Vermont, Mexico and China.
Paul B. Manning founded PBM in 1997 and has remained president, CEO and majority owner of the privately held business. Manning will continue to lead the company after the deal closes, which is expected to occur by the end of June.
"We are very excited about joining Perrigo," Manning said in the news release. "This merger will provide PBM with a strong base and strategic resources to continue to provide its customers with quality, affordable store-branded products."
Bill Freehling: 540/374-5405
Email: bfreehling@freelancestar.com