Shifting tax base to Ireland a 'no brainer' for US firm
Shifting its tax base to Ireland is a no brainer for Perrigo and will save the US company millions of dollars a year.
The company itself estimated that it will get annual synergies and tax savings of more than $150m (€113m) thanks to lower taxes and Elan's recent losses which can help Perrigo reduce its tax bill.
Michigan-based Perrigo – which has operations in the US, Israel and India – currently pays tax at an effective rate of about 23pc. Moving to Ireland will bring it down to 17pc, according to chief financial officer Judy Brown.
But she said the rate could even go lower as Perrigo increasingly channels expanding international interests through Ireland.
"If we continue to execute on growing the business the way we have, we believe it will continue to go down as we continue jurisdictional mix and leverage of the structures to provide additional value," she said.
Yesterday's deal was not the first and won't be the last deal to see an Irish company snapped up by a US rival. In May, Irish drug firm Warner Chilcott was acquired for $5bn by Actavis, which in turn reincorporated in Ireland.