posted May 7, 2007
Chattem, Inc. (NASDAQ: CHTT) – Chattanooga-based leading marketer and manufacturer of branded consumer products, on Monday announced that it has entered into an agreement to acquire the rights to ACT, a branded over-the-counter anti-cavity mouthwash/mouth rinse, in Western Europe together with worldwide trademark rights from Johnson & Johnson for $4.1 million in cash plus certain assumed liabilities.
The transaction has received the approval of the European Commission, and subject to certain closing conditions, is expected to close towards the end of May 2007.
Chattem acquired the U.S. rights to ACT from Johnson & Johnson as a part of its acquisition of five OTC brands in a transaction that closed on Jan. 2.
The rights to ACT in Western Europe are being divested by Johnson & Johnson as a condition to the European Commission’s approval of Johnson & Johnson’s acquisition of Pfizer Consumer Healthcare and certain regulatory requirements in connection with that acquisition in Greece.
To fund the transaction, Chattem will either utilize existing cash or borrow from its existing senior secured revolving credit facility.
“This acquisition will provide Chattem with a strategic vehicle to expand the ACT franchise in international markets,” said Zan Guerry, chairman and chief executive officer.
“The U.S. ACT business can serve as a foundation for new product development in the countries where ACT is currently sold which include Switzerland, Greece, Netherlands, Belgium and Luxemburg and for the introduction of ACT in additional markets,” continued Mr. Guerry. “Disciplined and strategic international acquisitions are a component of growth for us and this acquisition complements Chattem’s acquisition of ACT in the U.S. and the Selsun international business in 2002.”
Chattem, Inc. is a leading marketer and manufacturer of a broad portfolio of branded OTC healthcare products, toiletries and dietary supplements. The Company's products target niche market segments and are among the market leaders in their respective categories across food, drug and mass merchandisers. The Company's portfolio of products includes well-recognized brands such as Icy Hot®, Gold Bond®, Selsun Blue®, ACT®, Cortizone and Unisom®. Chattem conducts a portion of its global business through subsidiaries in the United Kingdom, Ireland and Canada.
| Dining Out | Business | Movies | Focus | About Us |
| Church | Living Well | Memories | Outdoors | Real Estate | Student Scene | Travel |