10.07.14
Bayer has completed the acquisition of the consumer care business of the US pharmaceuticals group Merck & Co., Inc.
While the deal was mainly comprised of products in the cold, allergy, sinus and flu cateories, the purchase also included iconic US sun care brand Coppertone.
"This acquisition is a milestone for Bayer and we intend to continue the expansion of our attractive over-the-counter business both through organic growth and bolt-on acquisitions," explained Bayer CEO Dr. Marijn Dekkers. Bayer paid a purchase price of $14.2 billion, less certain contingent amounts held back that will be payable upon antitrust approvals in Mexico and the Republic of Korea. Integration of the acquired business has been successfully initiated.
The acquisition significantly enhances Bayer's OTC business across multiple therapeutic categories and geographies. Pro forma sales of the combined businesses in 2013 amounted to $7.4 billion with Merck & Co., Inc.'s business contributing approximately $2.2 billion. The acquisition will give Bayer the global number two position in non-prescription medication—behind the combined OTC businesses of Novartis and GlaxoSmithKline’following the completion of their announced joint venture in 2015, and ahead of the world's previous industry leader Johnson & Johnson.
Approximately 2,000 employees from Merck & Co., Inc. and 8,800 from Bayer will be brought together under one roof in Bayer's new consumer care business. The integration process is off to a successful start with the decision on appointments to the top two management levels. The third management level is expected to be completed in the autumn of 2014.
The combined consumer care business is headed by Erica Mann, member of the Bayer HealthCare Executive Committee and responsible for the consumer care division.
"Our goal is to combine the best people and capabilities of both organizations", said said Mann. The management team of the merged businesses will be located at existing Bayer sites in Whippany, NJ; Basel, Switzerland; Shanghai, China; Leverkusen, Germany; and Singapore.
While the deal was mainly comprised of products in the cold, allergy, sinus and flu cateories, the purchase also included iconic US sun care brand Coppertone.
"This acquisition is a milestone for Bayer and we intend to continue the expansion of our attractive over-the-counter business both through organic growth and bolt-on acquisitions," explained Bayer CEO Dr. Marijn Dekkers. Bayer paid a purchase price of $14.2 billion, less certain contingent amounts held back that will be payable upon antitrust approvals in Mexico and the Republic of Korea. Integration of the acquired business has been successfully initiated.
The acquisition significantly enhances Bayer's OTC business across multiple therapeutic categories and geographies. Pro forma sales of the combined businesses in 2013 amounted to $7.4 billion with Merck & Co., Inc.'s business contributing approximately $2.2 billion. The acquisition will give Bayer the global number two position in non-prescription medication—behind the combined OTC businesses of Novartis and GlaxoSmithKline’following the completion of their announced joint venture in 2015, and ahead of the world's previous industry leader Johnson & Johnson.
Approximately 2,000 employees from Merck & Co., Inc. and 8,800 from Bayer will be brought together under one roof in Bayer's new consumer care business. The integration process is off to a successful start with the decision on appointments to the top two management levels. The third management level is expected to be completed in the autumn of 2014.
The combined consumer care business is headed by Erica Mann, member of the Bayer HealthCare Executive Committee and responsible for the consumer care division.
"Our goal is to combine the best people and capabilities of both organizations", said said Mann. The management team of the merged businesses will be located at existing Bayer sites in Whippany, NJ; Basel, Switzerland; Shanghai, China; Leverkusen, Germany; and Singapore.