P&G Acquires the Consumer Health Business of Merck KgaA

The Procter & Gamble Company announced it recently signed an agreement to acquire the Consumer Health business of Merck KgaA, Darmstadt, Germany, for a purchase price of approximately 3.4 billion euro.  This acquisition enables P&G to expand its successful consumer health care business by adding a fast-growing portfolio of differentiated, physician-supported brands across a broad geographic footprint.  It also provides P&G with strong health care commercial and supply capabilities, deep technical mastery and proven consumer health care leadership that will complement P&G’s existing consumer Health Care capabilities and brands such as Vicks, Metamucil, Pepto-Bismol, Crest and Oral-B.

The acquisition of the Consumer Health business of Merck KgaA, Darmstadt, Germany, replaces and improves upon the highly successful PGT Healthcare joint venture P&G had with Teva Pharmaceutical Industries (TEVA), which will be terminated July 1, 2018, pending regulatory approvals. The PGT Healthcare joint venture delivered disproportionate top- and bottom-line growth and established a major presence in over 50 countries since its formation.  However, 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.  PGT product assets will return to their respective parent companies to reestablish independent OTC businesses.

The $1 billion Consumer Health business of Merck KgaA, Darmstadt, Germany, grew 6% over the past two years and provides a broad range of OTC product remedies to relieve muscle, joint and back pain, colds and headaches as well as products for supporting physical activity and mobility.  Top brands include Neurobion, Dolo-Neurobion, Femibion, Nasivin, Bion3, Seven Seas and Kytta, along with many others.  These are sold primarily in Europe, Latin America and Asia.