Johnson & Johnson has agreed to buy Pfizer, Inc.’s consumer healthcare business for $16.6 billion in cash, ending a quest to determine strategic options for the business that began in February. The deal is expected to close by the end of the year.
Earlier this month, a number of Pfizer’s big rivals had bid more than $14 billion for the unit, which includes popular brands Listerine mouthwash, Sudafed and Lubriderm skin lotion (Xtra, June 9, 2006).
In addition to J&J, bidders included GlaxoSmithKline and Reckitt Benckiser, a British-based household cleaning products maker of Lysol, Woolite and other products. Pfizer is the world’s largest pharmaceutical company, following Glaxo.
Pfizer announced last February that it planned to sell its consumer products division to focus on its more profitable prescription drug business. The consumer products division reported 2005 sales of $3.9 billion, a 10% jump over 2004.
Pfizer’s consumer products unit is also the maker of Rolaids, Benadryl, Rogaine and Zantac.
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