Merck successfully divests Consumer Health
Closing of sale to Procter & Gamble at a cash purchase price of € 3.4 billion completed
Merck has successfully completed the sale of its Consumer Health business to Procter & Gamble (P&G), following close consultation with employee representatives, the approval of all relevant regulatory authorities and the fulfilment of other customary closing conditions. The successful completion of the transaction marks a further step in the company’s strategic focus on innovation driven businesses and transformation towards a leading science and technology company. The business transferred to P&G on December 1, 2018. The cash purchase price is approximately € 3.4 billion.
“The successful completion of this transaction is an important milestone for both Merck and Consumer Health,” said Belén Garijo, Member of the Executive Board and CEO Healthcare of Merck. “We are very pleased that together with P&G we have successfully delivered on an ambitious timeframe in closing this transaction. P&G offers excellent opportunities for the development of the Consumer Health business and we wish our colleagues all the best for the future.”
“After deducting taxes and transaction related effects, Merck will primarily use the net cash proceeds of approximately € 2.7 billion to further reduce its financial debt. With the successful and timely completion of the transaction, Merck has now hit its 2018 leverage target of a net debt to EBITDA pre ratio of less than 2. Furthermore we are increasing our flexibility to focus on innovation driven businesses within Merck‘s three business sectors,” said Marcus Kuhnert, Member of the Executive Board and Chief Financial Officer of Merck.
Merck and P&G pursued the Consumer Health transaction through the sale of shares in several Merck subsidiaries as well as so called asset deals. The transaction comprises the Consumer Health business in 44 countries with more than 900 products and two production facilities in Spittal (Austria) and Goa (India). Around 3,300 employees have transferred to P&G. Merck and P&G have signed a number of supply and service agreements to ensure a smooth transition of the business.
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