Chattem acquires Johnson & Johnson brands
over-the-counter personal care and medical brands to US personal
and healthcare player Chattem, in a move that expands the company's
existing portfolio in the US.
The company yesterday announced the closing of its previously announced agreement to acquire the US rights to three personal care brands and two healthcare brands from Johnson & Johnson for $410 million in cash.
The acquisition means that Chattem has added the three personal care brands: Act, an anti-cavity mouthwash/mouth rinse; Cortizone, a hydrocortisone anti-itch product; and Balmex, a diaper rash product.
The acquisition also includes the healthcare brands: Unisom, an OTC sleep aid and Kaopectate an anti-diarrhea product.
The brands were divested in connection with the recent acquisition by Johnson & Johnson of Pfizer's Consumer Healthcare business, which included the acquisition of the leading global oral care brand Listerine.
Regulatory requirements in connection with the acquisition of the Pfizer brands meant that Johnson & Johnson had to divest the healthcare and personal care brands to comply with strict market regulations that ensure individual companies do not have an unfair command of specific categories.
"We are excited to add these leading brands to the company's existing portfolio," said Zan Guerry, chairman and chief executive officer of Chattem.
Guerry went on to say that the deal had taken several months to broker and that following its completion the company would be looking to fulfill what it sees as being the significant growth potential of the brands.
Chattem stated that the acquisition was funded partly with the proceeds from a new $300 million term loan provided by Bank of America obtained through an amendment to its current credit agreement.
The remaining funds were principally obtained through the use of a portion of the proceeds derived from a number of the company's previously announced sale of company bonds.
Chattem markets a number of healthcare and personal care brands in the US and worldwide, with the help of distributors in key markets that include the UK, Ireland and Canada.
Its personal care portfolio incorporates skin care products that include the Sportscreme, Gold Bond and Aspercreme brands, together with hair care products that include the Sun-In, UltraSwim and Selsun Blue brands.
