Merck sell consumer health biz P&G €3.4 bn cash

Merck sells consumer health biz to P&G for €3.4 billion

5:27 AM, 19th April 2018
Merck’s global consumer healthcare brands.
Merck's global consumer healthcare brands.

DARMSTADT, GERMANY: Merck KGaA has signed an agreement to sell its global consumer health business to Procter & Gamble (P&G) for approximately €3.4 billion in cash.

The deal is expected to close by the end of the fourth quarter 2018.

As part of the transaction, Merck and P&G have agreed on a number of manufacturing, supply and service agreements.

“The divestment of the consumer health business is an important step in Merck’s strategic focus on innovation-driven businesses within healthcare, life science and performance materials. It is a clear demonstration of our continued commitment to actively shape our portfolio as a leading science and technology company. The attractive price reflects the high asset value and the performance consumer health has delivered,” said Stefan Oschmann, chairman of the executive board and CEO of Merck.

P&G’s global scale and strategic interest in the health and well-being of consumers provide an excellent basis for accelerating growth, leveraging our teams’ capabilities and expanding the Consumer Health business profitably. With this transaction, we continue to rigorously deliver on our strategy to become a global speciality innovator and bring breakthrough medicines to patients,” said Belen Garijo, member of the executive board of Merck and CEO healthcare.

“We like the steady, broad-based growth of the OTC healthcare market and are pleased to add Merck’s Consumer Health portfolio and people to the P&G family,” said David Taylor, P&G chairman of the board, president and CEO.

“These leading brands and the great employees of Merck’s consumer health business will complement our personal health care business very well. This acquisition helps us continue to drive sales and profit growth for P&G by providing the capabilities and portfolio scale we need to operate a winning global OTC business,” said Tom Finn, president, P&G global personal health care. 

JP Morgan acted as financial adviser to Merck and Freshfields Bruckhaus Deringer acted as a legal adviser on the transaction.

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