PERRIGO ACQUISITION OF GENTEK OTC BUSINESS

PERRIGO ACQUISITION OF GENTEK OTC BUSINESS will boost the private label company's manufacturing capacity in the cough/cold, antacid, and analgesic areas, Perrigo indicated in a June 28 press release announcing the agreement in principle. The cash deal is expected to close before Aug. 1. "Consumer demand for store brand OTCs has increased significantly in recent years and retailers expect the trend to accelerate in the 1990's," Perrigo President and CEO Michael Jandernoa stated. "This acquisition and recently announced plant expansion will enable Perrigo and their retail customers to satisfy that consumer demand." Gentek is being purchased from NASCO, a holding company based in Nashville, Tennessee. The Gentek acquisition is the first evidence of renewed expansion plans on the part of Perrigo. Perrigo expansion plans had been hampered under Grow Group as a result of the extensive debt taken on by the parent company to acquire the private label manufacturer. The company was acquired from parent Grow Group by a management group last April for $ 61 mil. The purchase of Cincinnati-based Gentek will provide Perrigo with a manufacturing facility and operational staff. Perrigo describes Gentek as a private label manufacturer "specializing in cold remedies, antacids and analgesics." Perrigo is a private label manufacturer of OTC drugs and toiletries with plants in Montego, Michigan, and Greenville, South Carolina, as well as in Allegan, Michigan, where the company is based. For the fiscal year ended June 30, 1987 Perrigo had sales of approximately $ 150 mil.