Sanofi-Aventis to buy consumer health firm Chattem for $1.9 billion, aiming for bigger role in OTC

In a move that will take it up to fifth place in global consumer health care ' and confirming its aims to expand in niche markets rather than through mega buys/mergers, French drug major Sanofi-Aventis says it has entered into a deal to acquire the US firm Chattem in a deal valuing the latter at some $1.9 billion.

Over-the-counter and consumer brands are core growth platforms identified in Sanofi-Aventis' broader strategy for achieving sustainable growth. Although the group will generate around 1.4 billion euros ($2.905 billion) worldwide in OTC sales in 2009, it has thus far not been directly present in the USA, the Paris-based company explained.

Chattem is about 130 years old and is a leading manufacturer and marketer of branded consumer health care products, toiletries and dietary supplements across niche market segments in the USA. With total sales last year of $455 million its well known brands include Gold Bond, Icy Hot, ACT, Cortizone-10, Selsun Blue and Unisom.

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