Sanofi-aventis has completed its acquisition of 100% of Chattem, Inc., which is now a wholly-owned subsidiary of the sanofi-aventis Group.
By strengthening its presence in the U.S. consumer healthcare market, which represents 25 percent of the current worldwide market, sanofi-aventis is building a significant platform for future growth and further securing its position as a global, diversified healthcare company. This acquisition also provides new channels for maximizing the potential of converting sanofi-aventis' prescription medicines to over-the-counter (OTC) products, beginning with Allegra@ (fexofenadine hydrochloride), which is expected to be an important growth driver for sanofi-aventis.
"The addition of Chattem to our worldwide portfolio of leading consumer healthcare businesses represents an important milestone in sanofi-aventis' strategy to become a global diversified healthcare leader," declared Christopher A. Viehbacher, Chief Executive Officer of sanofi-aventis.
"Chattem's existing sales, marketing and distribution teams and infrastructure provide a tremendous platform for future conversions of prescription medicines to OTC products in the U.S., and I am confident that Chattem will maximize the success of those conversions. I look forward to working with Zan Guerry and the Chattem leadership team, who will play a key role in the performance of our Consumer Health Care activities." "The entire Chattem team is excited to serve as the base for sanofi-aventis' U.S. consumer healthcare business and looks forward to capturing the significant growth opportunities," said Zan Guerry, Chief Executive Officer of Chattem. "This acquisition creates substantial benefits for our employees, customers and the city of Chattanooga." Effective after market close on March 10, 2010, Chattem's common stock ceased trading on the NASDAQ Global Select Market.
The transaction is expected to be accretive to sanofi-aventis' earnings as early as year one. This acquisition will allow sanofi-aventis to optimize and retain the full value of a future Allegra@ switch to an OTC product. Also, the Group expects to obtain significant revenue synergies through the expansion of Chattem's products into currently untapped geographic markets where sanofi-aventis has a strong operating presence.
Chattem, sanofi-aventis' U.S. consumer healthcare division, will be headquartered in Chattanooga, Tennessee. Mr. Guerry will lead the U.S. consumer healthcare business reporting to Greg Irace, President and CEO, sanofi-aventis U.S.