Sanofi-Aventis is to buy US consumer health company Chattem in a $1.9 bn (Euro 2.71 bn) cash deal, according to a report in the UK Financial Times. Chattem sells products such as Icy Hot cream and Selsun Blue anti-dandruff shampoo; the acquisition will provide the French company with “the ideal platform in the US consumer healthcare market,” according Sanofi boss Chris Viehbacher.
Sanofi will pay $93.50 (Euro 133.71) a share for Chattem; the offer was at a 34 per cent premium to Chattem’s closing stock price on Friday 18th December. The US company’s shares leapt 32.8 per cent to $92.94 in midday trading.
The deal is expected to close in the first quarter of 2010. Sanofi will retain Chattem’s two manufacturing plants in Tennessee, US, and also build a third.