Sanofi-Aventis Buying Chattem for $1.9 Billion

The drug maker Sanofi-Aventis said Monday that it had agreed to buy the consumer health care company Chattem for about $1.9 billion, in a deal which will give Sanofi an over-the-counter presence in the United States, Reuters reported.

Sanofi said in a statement that it would start a tender offer for all of Chattem’s shares at $93.50 a share in cash. The French group said the offer represented a 34 percent premium above the Chattem’s closing share price on December 18.Sanofi added that the transaction was valued at about $1.9 billion and had been backed by Chattem’s directors.

Chattem, which was founded more than 100 years ago, makes and sells household and personal care products such as over-the-counter drugs, cosmetics and dietary supplements.

Its products include 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.

Mr. Viehbacher said told a conference call that Chattem was an ideal entry into the United States and would manage its Allegra drug, which is losing its status as a prescription drug.

Also on Monday, Sanofi said it had stopped developing two medicines as part of an overhaul of its research and development portfolio, saying they would not bring significant benefits.

In October, Chattem made a third quarter net profit of $23.4 million.Report :- New New York Times