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news.GlaxoSmithKline has agreed to acquire US-based CNS, the manufacturer of Breathe Right nasal strips and FiberChoice dietary fiber supplements, for $566 million.
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The merger consideration, at $37.50 per share in cash, represents a premium of 31% over the trading price of CNS's common stock at close of business on October 6, 2006. GSK said that the transaction is expected to close by early 2007.
The Breathe Right brand includes a line of nasal strips which open nasal passages to assist better breathing and are designed for people suffering from congestion through allergies or colds. The company also owns FiberChoice a line of popular fiber supplements which are marketed solely in the US.
John Clarke, president of GSK consumer healthcare, said: “This outstanding business provides a great global growth opportunity for GSK. CNS is a well-managed company. Its two major brands, Breathe Right and FiberChoice, fit with our growth strategy and are great additions to our portfolio. The opportunity for growth through geographic expansion and pipeline innovation make this acquisition an exciting prospect.”
Breathe Right has delivered 12% and FiberChoice 54% sales compound annual growth rates, respectively, over the past three years. GSK said that the transaction will be neutral to earnings in 2007, and accretive from 2008.