Johnson & Johnson has won the auction to acquire Pfizer Consumer Healthcare, topping out at $16.6 billion in cash. Pfizer Consumer Healthcare's global business of personal care and over-the-counter (OTC) products achieved sales of $3.9 billion in 2005. Worldwide brands include Listerine oral care products and the Nicorette line of smoking cessation treatments as well as Lubriderm, Visine, Neosporin, Sudafed, Zantac and Benadryl.
"This combination creates the world's premier consumer health care company," said William C. Weldon, chairman and chief executive officer of J&J. "Our consumer business has a long tradition of outstanding performance and a proven track record in growing consumer brands at above-category levels through innovation. This acquisition builds upon our broad base in health care products and our leadership objectives in the consumer, pharmaceutical and medical devices and diagnostics markets."
The combined portfolio of OTC brands will enhance the global market-leading position of Johnson & Johnson's OTC franchise, which includes Band-Aid, Tylenol, Reach, Splenda and the Clean & Clear, Aveeno and Neutrogena skin care brands. Under the terms of the agreement, J&J will also acquire the U.S. OTC switch rights to Zyrtec, Pfizer's prescription antihistamine, upon patent expiration.
The J&J board of directors has given approval to the transaction. The closing, subject to customary clearances, is expected by the end of this year.