Sanofi-aventis Acquires Chattem

The 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 growth driver for sanofi-aventis.

The transaction is expected to be accretive to sanofi-aventis’ earnings as early as year one. The acquisition will allow sanofi-aventis to optimise and retain the full value of a future Allegra switch to an OTC product. Also, the Group expects to obtain revenue synergies through the expansion of Chattem’s products into currently untapped geographic markets where sanofi-aventis has a strong operating presence.

Christopher Viehbacher, chief executive officer of sanofi-aventis, said: “The addition of Chattem to our worldwide portfolio of leading Consumer Health Care businesses represents an important milestone in sanofi-aventis’ strategy to become a global diversified healthcare leader.

“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 US 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.”

Zan Guerry, chief executive officer of Chattem, said: “The entire Chattem team is excited to serve as the base for sanofi-aventis’ US consumer healthcare business and looks forward to capturing the significant growth opportunities. This acquisition creates substantial benefits for our employees, customers and the city of Chattanooga.”