Here’s something unseasonal: an M&A announcement coming out of Paris and Chattanooga, Tennessee, days before Xmas.
Sanofi-Aventis is paying $1.9bn in cash, or $93.50 per share, for Chattem, a decidedly consumer-facing business which has been producing toiletries, creams and dietary supplements for 130 years.
Brands include Gold Bond® body powder, Icy Hot® pain relief patches, ACT® mouthwash, Cortizone-10® fast itch cream, Selsun Blue® dandruff shampoo and Unisom®, “America’s leading brand of single ingredient non-prescription sleep-aids.”
Snaps from the statement:
– Combination Strengthens sanofi-aventis’ Strategy to Accelerate Growth Through Innovation, Geographic Expansion and External Growth
– Chattem Provides Strong Platform for Conversion of some of sanofi-aventis’ Prescription Medicines to Over-the-Counter Products
– Chattem Management to Lead the U.S. Consumer Healthcare Division of sanofi-aventis, to be Headquartered in Chattanooga, Tennessee
Sanofi is clearly very keen on building its over-the-counter business. Surprisingly, perhaps, this will provide its first OTC presence in the US.
The agreed deal for Chattem is pitched at a 34 per cent premium to Friday’s close.
Get the full multi-media deal package here.
UPDATE: John Gapper draws our attention to the fact that Chattem has a wonderful history of snake-oil type potions…
Related links:
Sanofi-Aventis to buy Chattem for $1.9bn – FT