Merck have announced that it has signed an agreement to sell its global Consumer Health business to Procter & Gamble (P&G) for approximately €3.4 billion in cash, or approximately $4.2 billion at current exchange rates. The transaction, which is expected to close by the end of the fourth quarter 2018, is subject to regulatory approvals and satisfaction of certain other customary closing conditions. Merck intends to use the net proceeds from the divestiture primarily to accelerate deleveraging. At the same time, it will allow Merck to increase flexibility to strengthen all three business sectors.
Stefan Oschmann, Chairman of the Executive Board and CEO of Merck said, “The divestment of the Consumer Health business is an important step in Merck’s strategic focus on innovation driven businesses within Healthcare, Life Science and Performance Materials. It is a clear demonstration of our continued commitment to actively shape our portfolio as a leading science and technology company.”
Belén Garijo, Member of the Executive Board of Merck and CEO Healthcare commented, “With this transaction, we continue to rigorously deliver on our strategy to become a global specialty innovator and bring breakthrough medicines to patients.”
Tom Finn President, P&G Global Personal Health Care said, “These leading brands and the great employees of Merck’s Consumer Health business will complement our Personal Health Care business very well.”