French drug major Sanofi-Aventis today said it will buy US-based consumer healthcare company Chattem for about $1.9 billion.
"The transaction will create the world's fifth-largest consumer healthcare company measured by product revenues," the companies said in a joint statement.
Under the agreement between the two firms, Sanofi-Aventis would "acquire 100 per cent of the outstanding shares of Chattem in a cash tender offer for $93.50 per share or about $1.9 billion".
Chattem is a leading manufacturer and marketer of branded consumer healthcare products, toiletries and dietary supplements across niche market segments in the United States.
Although Sanofi-aventis Group will generate around euro 1.4 billion worldwide in over-the-counter sales in 2009, it has thus far not been directly present in the US.
The acquisition will "provide us with the ideal platform in the US consumer healthcare market, which represents 25 per cent of the current worldwide opportunity", Sanofi-Aventis Chief Executive Officer Christopher A Viehbacher said.
Sanofi-Aventis also announced today that it will seek to convert its antihistamine brand known as Allegra (fexofenadine HCl) in the US from a prescription medicine to an OTC product.
"I am excited to work with the Sanofi-Aventis team to capture the significant growth opportunities this combination creates, as highlighted by the planned launch of Allegra," Chattem Chairman and CEO Zan Guerry said.
