GlaxoSmithKline to acquire CNS for $566 million

GlaxoSmithKline (GSK), the UK’s largest pharmaceutical company, has agreed to acquire CNS for $566 million (304 million pounds).

CNS manufactures Breath Right nasal strips and FiberChoice dietary fibre supplements, marketed in 27 countries, although the majority of products sold by the company are in the US.

The move will strengthen GSK’s consumer healthcare range, according to John Clarke, president of GSK consumer healthcare.

“This outstanding business provides a great global growth opportunity for GSK,” he said.

“The opportunity for growth through geographic expansion and pipeline innovation make this acquisition an exciting prospect.”

Although the FiberChoice supplements are not sold outside the US, CNS claims that its Breathe Right strips are the “leading” nasal strip products.

Having paid a 31 per cent premium on CNS’ trading price, GSK will add the two products to its “well-known” healthcare brand list, which includes Panadol, Nicoderm, Aquafresh, Sensodyne, as well as nutritional healthcare products like Lucozade and Ribena.

GSK says the acquition will be “neutral to earnings” in 2007 and accretive from 2008.

CNS employs around 66 members of staff and launched in 1982 as manufacturer of brain diagnostic devices.