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news.GlaxoSmithKline, the global pharmaceutical and healthcare company, has completed its acquisition of Minneapolis, Minnesota-based CNS, the consumer healthcare products company that markets Breathe Right nasal dilator strips and FiberChoice dietary fiber supplements.
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The transaction saw GSK purchase all outstanding CNS shares for approximately $566 million. According to GSK, CNS reported a 20% increase in sales in fiscal 2006 over the previous year, with the US accounting for 86% of the company’s sales.
Although the FiberChoice fiber supplements are marketed solely in the US, the Breathe Right brand products are marketed in 27 countries including Japan, Australia and much of Europe. GSK will add these brands to its over-the-counter healthcare portfolio.
John Clarke, president of GSK consumer healthcare, said: “CNS is a well-managed company, and its brands fit with our growth strategy and are great additions to our portfolio. The opportunity for growth through geographic expansion and pipeline innovation makes this acquisition an exciting prospect.”
Marti Morfitt, president and CEO of CNS, added: “I am very proud of our achievements at CNS and the success we have built around our brands, and am pleased that our good work will continue with GSK as these brands realize their worldwide potential.”
According to GSK, the Breathe Right and FiberChoice brands have delivered compound annual sales growths of 12% and 54% respectively over the last three years. GSK expects the transaction to be neutral to earnings in 2007 and accretive from 2008.