Bayer closes $14.2 bn deal to acquire Merck's consumer care business

Bayer completed the acquisition of the consumer care business of the US pharmaceuticals group Merck & Co Inc, Whitehouse Station, New Jersey, on October 1, 2014, following receipt of required antitrust approvals. “This acquisition is a milestone for Bayer and we intend to continue the expansion of our attractive over-the-counter business both through organic growth and bolt-on acquisitions,” explained Dr Marijn Dekkers, CEO, Bayer.
 
Bayer paid a purchase price of $ 14.2 billion, less certain contingent amounts held back that will be payable upon antitrust approvals in Mexico and the Republic of Korea. Integration of the acquired business has been successfully initiated. The combined consumer care business is headed by Erica Mann, member of the Bayer HealthCare Executive Committee and responsible for the Consumer Care division.
 
The acquisition significantly enhances Bayer's over-the-counter (OTC) business across multiple therapeutic categories and geographies. Pro forma sales of the combined businesses in 2013 amounted to $ 7.4 billion (Euro 5.5 billion), with Merck & Co’s business contributing approximately $ 2.2 billion. The acquisition will give Bayer the global number two position in non-prescription medication - behind the combined OTC businesses of Novartis and GlaxoSmithKline, following the completion of their announced joint venture in 2015, and ahead of the world's previous industry leader Johnson & Johnson.
 
Within a highly diverse industry, Bayer is now the OTC leader in North and Latin America and the leader in dermatology and gastrointestinal treatments, two of the five most important non-prescription health care product categories. The company has advanced to the number two position in the cold, allergy, sinus and flu category and remains the number two in nutritionals and number three in analgesics.
 
The consumer care business acquired from Merck & Co is primarily comprised of products in the cold, allergy, sinus & flu; dermatology (including sun care); foot health; and gastrointestinal categories.