The Most Significant OTC Purchase Ever Made?

SmithKline Beecham describes its divestment of the just-acquired Sterling Winthrop North American over-the-counter medicines business to German chemical and pharmaceutical company Bayer as marking "the completion of the most significant purchase ever made in the OTC industry."

There is no doubt that SB has moved very fast with this deal, and that SB management did its homework thoroughly, as the North American divestment makes good strategic sense. SB is parting with around 25% of the SW business' profits for around one third of the consideration. It was around two weeks after the announcement that SB was acquiring Sterling Winthrop from Eastman Kodak at the end of August that SB and Bayer revealed their agreement on the North American business.

Sterling Winthrop's OTC business is a truly international one with exceptional geographic and sales strength in Europe, Australia, New Zealand, Latin America, the Pacific Rim, the Middle East, and Africa, according to SB. It is the leading OTC company outside North America and Japan, with sales in around 100 countries and offices in 55.