Johnson and Johnson set to buy Pfizer Consumer Healthcare

Johnson and Johnson has announced it has reached an agreement with Pfizer to buy Pfizer Consumer Healthcare for a cash sum of $16.6 billion (9.1 billion pounds).

Pfizer Consumer Healthcare, which produces products including Listerine mouthwash, Nicorette, Sudafed, Zantac and Benadryl, will be incorporated to create what Johnson and Johnson terms as the “world’s premier consumer health care company”.

Although the deal has yet to pass American and European anti-trust examinations, Johnson and Johnson said it expects the acquisition to be completed by the end of 2006.

William C Weldon, chairman and chief executive officer of Johnson and Johnson, remarked: “Our consumer business has a long tradition of outstanding performance and a proven track record in growing consumer brands at above-category levels through innovation.”

“This acquisition builds upon our broad base in health care products and our leadership objectives in the consumer, pharmaceutical and medical devices and diagnostics markets,” he added.

Pfizer said it will use the money gained from the divestment to drive investment in drug development and strengthening the company’s long-term pipeline. Pfizer chairman and chief executive officer, Hank McKinnell, said the agreement represented “excellent value” for Pfizer shareholders and stated that the company’s position to capitalise on future opportunities would be “even stronger”.

The acquisition of Listerine will apparently treble the income of Johnson and Johnson’s oral health care division into an operation that brings in over $1 billion each year.

GlaxoSmithKline had earlier been touted as a favourite to buy the Pfizer Consumer Health business. Reckitt Benckiser and Bayer had also been linked.

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