P&G to buy Merck KGaA’s consumer health unit

Procter & Gamble (P&G) has announced plans to buy the consumer health business of Merck KGaA for €3.4 billion ($4.2 billion).

On Thursday, April 19, P&G said the deal would help the company expand its consumer healthcare business by “adding a fast-growing portfolio of differentiated, physician-supported brands across a broad geographic footprint”.

Merck KGaA’s $1 billion business provides over the counter products (OTC) to relieve muscle, joint and back pain, colds and headaches, and products for supporting physical activity and mobility.

These include nutritional supplements under the Seven Seas brand and nasal decongestant Nasivin (oxymetazoline hydrochloride).

The acquisition replaces P&G’s healthcare joint venture with Teva, which will be terminated on July 1.

Following a recent review, Teva and P&G concluded that “priorities and strategies were no longer aligned, and agreed to terms where it would be mutually beneficial to terminate the partnership”.

P&G’s consumer health business offers brands including Vicks, Pepto-Bismol (bismuth subsalicylate), and toothpaste products Crest and Oral-B.

David Taylor, chairman, president and CEO of P&G, said: “We like the steady, broad-based growth of the OTC healthcare market and are pleased to add the consumer health portfolio and people of Merck KGaA, Darmstadt, Germany to the P&G family.”

Stefan Oschmann, chairman and CEO of Merck KGaA, added that the divestment is an important step in the company’s focus on innovation-driven businesses with healthcare, life sciences and performance materials.

Oschmann said: “It is a clear demonstration of our continued commitment to actively shape our portfolio as a leading science and technology company.”

The news comes after GSK revealed in March that it will buy Novartis out of their joint consumer healthcare business for $13 billion.

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