American drugs giant swoops for Galpharm
ONE OF the UK'S leading over-the-counter medicine and healthcare product suppliers, founded by former Huddersfield Town chairman Graham Leslie, has been bought by American drugmaking giant Perrigo for more than £40m.
The acquisition of Galpharm Healthcare by Perrigo sees Mr Leslie exit the company he founded in 1982 with a £5,000 bank loan.
Perrigo, which is based in Michigan but has two operations in the UK, said the purchase would add more than £25m in sales.
Galpharm, based in Dodworth, Barnsley, employs 65 people and offers a range of products used by supermarkets, drug stores and pharmaceutical companies under their own labels or under the Galpharm brand.
The company claims that on average every person in the UK buys two to three packets of Galpharm produced medicines each year.
The $86m deal sees Perrigo become the UK's largest manufacturer and supplier of over-the-counter medicines, vitamins, minerals and supplements and herbal remedies.
Perrigo, which is listed on the US stock market NASDAQ, said the Galpharm brand and business would continue to operate from Barnsley and there would be “no immediate operational changes”.
David Tozer, Perrigo UK's human resources director, said Mr Leslie had left Galpharm to pursue other business interests following the deal.
Mr Tozer also said the acquisition would not affect Galpharm's sponsorship of the stadium which is shared by Huddersfield Town and Huddersfield Giants.
Russell Howard, vice president and managing director of Perrigo in the UK, who has become managing director of the combined business, said: “The purchase of Galpharm Healthcare consolidates Perrigo's position as the leading over-the-counter and vitamins, minerals and supplements supplier of own label products to major UK grocery and pharmacy retailers with a broader range of products.
“It means we can combine our current manufacturing and packaging expertise with Galpharm's outsourcing know-how in order to leverage our new product development pipeline offering our customers an improved value added service and a more flexible operation which will provide increased business growth opportunities.
“This acquisition is further evidence of Perrigo's commitment to the UK marketplace and is another significant step in our growth strategy in both the own label market place and contract manufacturing.”
Galpharm supplies products including cough and cold remedies and painkillers including Ibuprofen and Paracetemol.
Perrigo's other UK bases are in Braunton, Devon, and Swadlincote in Derbyshire, and it also has operations in China, Germany, Israel and Mexico.
