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Sanofi-Aventis to Acquire Chattem

Sanofi-Aventis will acquire the U.S. consumer healthcare group, Chattem Inc., for approximately $1.9 billion through a cash tender offer. The pharmaceutical company said it will acquire 100 percent of outstanding shares by offering “all of Chattem’s shares at $93.50 per share, a premium of 34 percent over Friday’s closing price,” Reuters reported.

According to a Sanofi-Aventis' statement, this "transaction will create the world's fifth-largest consumer healthcare company measured by product revenues." Chattem's key brands include Gold Bond, Icy Hot, ACT, Cortizone-10, Selsun Blue and Unisom.

Sanofi-Aventis chief executive Chris Viehbacher said the deal will provide an "ideal platform" for converting prescription medicines to OTC products. The pharmaceutical company plans to switch its prescription allergy treatment, Allegra, to an OTC product. "Upon Allegra's conversion, Chattem will assume responsibility for the Allegra brand as part of becoming the platform for Sanofi-Aventis' U.S. OTC and consumer healthcare business," the news release continued.

Chairman and chief executive of Chattem, Zan Guerry, said, "Chattem will form the base of a new consumer healthcare business in the United States for Sanofi-Aventis, and the headquarters, manufacturing and leadership team will continue to be based in Chattanooga, [Tennessee]." In addition, Sanofi-Aventis will "maintain both of Chattem's existing manufacturing facilities and will continue construction on the third. The corporate brand of Chattem will also be maintained," the companies reported.

Click here to read the full news release from Sanofi-Aventis and Chattem.