Boehringer Ingelheim to buy remainder of SSP for $365 million to expand OTC business in Japan

12 February 2010

Boehringer Ingelheim, Germany's largest independent drugmaker, has revealed plans to take full control of Japanese over-the-counter medicines company SSP, by buying the 40% of the firm it does not already own for about $365 million - valuing the total business at more than $900 million - as it looks to expand in the world's second-largest drug market.

Boehringer Ingelheim built up its holding in the Japanese firm in several stages, the first being a 9.2% stake in 1996, the latest in 2001, bringing the total to 60%. SSP is a maker of laxatives (leading brands Surulac and Detofiber), cough medicines, pain killers and other OTC drugs.

The German company said it would launch a tender offer for all shares in SSP at 710 yen per share, a 25% premium to its closing price of 566 yen ahead of the announcement, in a tender offer due to commence on February 15 that has reportedly been agreed by the Japanese firm. The news saw SSP's stock rise 6.8% to 566 yen.

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