Perrigo (NYSE:PRGO) has a new business in its portfolio. The firm announced that it has closed the purchase of Velcera, a privately held enterprise that produces pet health goods. The price was roughly $160 million in cash.
The new acquisition specializes in what are essentially over-the-counter products for animals. Retail sales for Velcera's flagship PetArmor line topped $100 million in 2012. Perrigo said PetArmor will be augmented by a number of goods currently in development in the flea and tick and health and wellness categories.
Perrigo estimates that Velcera will be "slightly accretive" to adjusted EPS in fiscal 2013. In the following year, it expects the acquisition to be accretive by $0.11.
Fool contributor Eric Volkman has no position in Perrigo, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Why Macy's, Hostess Brands, and Perrigo Jumped Today
Find out what kept these stocks higher in a down market.
The Not-So-Subtle Reason Behind Perrigo Company PLC's 13% Move Higher
With one exception, Perrigo's third-quarter operating results continue to show signs of improvement.
Why Pan American Silver, Chefs' Warehouse, and Perrigo Jumped Today
Even on a bad day for the market, these stocks climbed. Find out why.