Chattem Buying
December 21, 2009
On Monday, the drug maker Sanofi-Aventis stated that it had contracted to purchase the consumer health care company Chattem. It was also said that the company would be bought for about $1.9 billion through an agreement that will give Sanofi an over-the-counter presence in the United States.
Sanofi said in a statement that a tender offer will be initiated for all of Chattem’s shares at $93.50 a share in cash.
The French group stated that the offer embodied a 34 percent premium above the Chattem’s closing share price on 18th December. Sanofi further added that the transaction was backed by Chattem’s directors and was valued at about $1.9 billion.
Chattem was founded more than a century ago. It makes and sells household and personal care products including counter drugs, cosmetics and dietary supplements.
The products encompass of Selsun Blue dandruff shampoo, Cortizone-10, Gold Bond skin care creams and Icy Hot pain relief medicine.
“The acquisition of Chattem will be a significant milestone in Sanofi-Aventis’ transformation strategy and will provide us with the ideal platform in the U.S. consumer healthcare market, which represents 25 percent of the current worldwide opportunity,� the Sanofi chief executive Christopher A. Viehbacher said in a statement.
Posted by James Kevonte · Filed Under US News
