SK Capital has announced that it has struck an acquisition deal through which it will acquire the pharma business owned by Perrigo Company plc Ordinary Shares (NYSE:PRGO).

The company is reportedly selling the Israeli-based unit for $110 million as part of the agreement with SK Capital. The latter which deals with chemical and pharmaceutical companies will strengthen its portfolio which currently consists of assets worth $1.9 billion through the new purchase. The new deal will see the transfer of ownership for the unit called Chemagis which Perrigo acquired in 2005 from Israeli firm Agis in a deal valued at $818 million.

The sale of the Chemagis unit to SK Capital thus means Perrigo decided to sell the unit for a much cheaper price than the price at which it acquired the unit. This could be due to any number of factors that were not highlighted. Looking into Perrigo’s performance reveals that it reported its second quarter revenue numbers at $1.2 billion which is impressively higher than what analysts expected. However, it was lower by 7.7 percent compared to the company’s revenue numbers in the first quarter.

The announcement about SK Capital acquiring the Chemagis unit from Perrigo also comes at a time when the company is in search of someone to take over the help. This is after the CEO John Hendrickson announced plans to step down.

“Perrigo is currently searching for a new CEO after John Hendrickson said that he is stepping down,” stated an Israeli publication known as Globes Online.

Meanwhile, both Perrigo and SK Capital have agreed to sign a long-term supply agreement that will allow Perrigo API to provide multiple existing and pipeline APIs to SK Capital. This is in line with the purchase agreement for the Chemagis unit. Highly specialized Israeli pharmaceutical executives will also be joining the business board of directors. This decision was made as part of the renewed strategic vision for Perrigo’s API to be an independent and high-quality API supplier for the generic pharmaceutical industry.

Perrigo stock closed the latest trading session on Thursday at $76.84 after a $15 percent surge compared to the previous close.