P&G Buys Consumer Health Business Of Merck KgaA For EUR3.4 Billion

Marco Green
April 19, 2018

P&G Ggobal personal health care president Tom Finn said: "These leading brands and the great employees of the Consumer Health business of Merck KGaA, Darmstadt, Germany, will complement our Personal Health Care business very well".

Some of the brands included in the transaction are Neurobion, Femibion, Nasivin, Dolo-Neurobion, Bion3, Kytta and Seven Seas which are sold mainly in Europe, Asia and Latin America.

Morgan Stanley analyst Vincent Meunier said the price still implied a valuation of 4.7 times sales and around 19 times operating profit (EBITDA) for the business, at the high end of recent deals seen in the sector.

The acquisition of the Consumer Health business of Merck KGaA, replaces the PGT Healthcare joint venture P&G had with Teva Pharmaceutical Industries, which will be terminated July 1, 2018, pending regulatory approvals, according to a company release.

Today, Merck said it would use the net proceeds from the spinoff "primarily to accelerate deleveraging", but also to give its key businesses - healthcare, life sciences and performance materials - extra financial clout.

As part of the deal, P&G will buy a majority stake in the German company's Indian consumer health business, Merck Ltd, and subsequently make a mandatory tender offer to minority shareholders.

The Consumer Health business of Merck KGaA is active across 44 countries and includes more than 900 products.

Other reports by Click Lancashire

Discuss This Article