SmithKline Beecham To Acquire Sterling Winthrop

UK pharmaceutical company SmithKline Beecham is acquiring leading over-the-counter medicines business Sterling Winthrop from US company Eastman Kodak for a sum of $2.93 billion. The deal will establish the world's largest OTC drug company with combined sales from Sterling Health and SB's OTC arm for 1993 of around $2 billion, double that of SB's last year.

"This is an important step towards our goal of becoming the world's leading health care company. The combination of Sterling Winthrop's extensive geographic reach and SmithKline Beecham Consumer Healthcare's excellent brand portfolio creates a powerhouse in the increasingly important field of self-medication, and is a landmark opportunity to make SB the world leader in OTC medicines," commented Jan Leschly, SB's chief executive. He also said that the deal provides SB with a chance to broaden the use of OTC diagnostic products that it is developing.

The OTC medicines market worldwide amounts to around $30 billion with an annual growth rate of 6%. SB's acquisition would put the combined business at the head of the European market with sales of around $311.1 million, fourth in the USA with sales over $931.8 million, and international sales make up total sales of $2 billion.