ALLEGAN, Mich. (AP) -- Perrigo Co. said Monday that it bought the ophthalmic ointment and solution portfolio of Fera Pharmaceuticals LLC for $93 million in cash.

Perrigo has been looking for an ophthalmic deal as part of its strategy to expand its presence in the niche topical medication market.

The company also agreed to $36 million in potential contingency payments if it secures additional product rights from Fera. Perrigo also anticipates a tax benefit, worth an estimated $20 million, as a result of the acquisition.

Fera is a privately held Long Island, N.Y.-based specialty pharmaceutical company. The deal includes the acquisition of nine of its products that generated more than $30 million in revenue in 2012.

Perrigo said the deal will add 4 cents per share to its 2014 earnings, or 12 cents per share on an adjusted basis.

The company, based in Allegan, Mich., makes over-the-counter and generic prescription pharmaceuticals, as well as infant formulas, nutritional products, dietary supplements and more.

Shares of Perrigo increased $1.60 to $120.20 in late morning trading, in line with broader market trends.

Perrigo is an American-Israeli company and traded on the Tel Aviv Stock Exchange.