Bayer to Buy SmithKline Unit
Leverkusen, Germany, through its wholly owned subsidiary Miles Inc. here, will pay $1 billion cash to SmithKline Beecham, London, for the North American over-the-counter drug business of Sterling Winthrop, the companies announced. The deal is subject to regulatory approval.
If the deal is approved, Bayer would regain the American rights to Bayer aspirin, which was invented by a Bayer company chemist in 1897.
Bayer's U.S. assets were confiscated as enemy property in 1918 by the U.S. government and were acquired at auction at that time by Sterling for $5.3 million.
Along with Bayer aspirin, Bayer AG would acquire the North American rights to brands including Midol, Stridex, Phillips' Milk of Magnesia and Neo-Synephrine. These products would be added to Bayer's current list of brands, including Alka-Seltzer, and One-A-Day and Flintstones vitamins.
Sterling's North American OTC business, which had sales last year of $366 million, profits of $43 million and net assets of $187 million, has had two owners in the past month. In late August, SmithKline Beecham purchased Sterling Winthrop's global, over-the-counter drug business for $2.9 billion from Eastman Kodak, Rochester, N.Y. SmithKline will retain possession of the international portion of Sterling's business.
Kodak, which purchased Sterling Drug in 1988 for $5.1 billion, has begun selling all its operations not related to its photography and electronic imaging business.
Kodak to Sell Division to J&J
NEW BRUNSWICK, N.J. -- Johnson & Johnson here has agreed to purchase Clinical Diagnostics from Eastman Kodak, Rochester, N.Y., for $1.008 billion cash, the companies announced. "This acquisition fits perfectly our strategic objective of enhancing our business in diagnostic products," said Ralph S. Larsen, chairman and chief executive officer of Johnson & Johnson. J&J's existing diagnostics business, Ortho Diagnostic Systems, had sales last year of more than $1 billion. Clinical Diagnostics had sales last year of $535 million.
If it is consummated, the deal would be J&J's second major acquisition in recent months. In late August, the company acquired Neutrogena, a manufacturer of skin and hair care products, for $924.1 million.
Kodak is to transfer to J&J virtually all assets relating to the business, including products, patents and technology, production equipment and personnel.
FTC Seeks More Lilly-PCS Data
INDIANAPOLIS -- The Federal Trade Commission has requested more information from Eli Lilly here on its planned $4 billion purchase of PCS Health Systems Inc., a subsidiary of McKesson Corp., San Francisco. The FTC explained this was not unusual, given the size of the transaction.
On July 11, Lilly, a global pharmaceuticals manufacturer, announced it planned to acquire PCS, one of the largest pharmacy benefit managers in the United states. Randall L. Tobias, Lilly's chairman and chief executive officer, called this the largest acquisition in the company's history.
In response to the FTC's request, Lilly extended its $76 per share stock offer to McKesson to Sept. 26. The offer was due to expire Sept. 9.
Nivea Line Expands With 3 Items
NORWALK, Conn. -- The Nivea brand line of products, manufactured by Beiersdorf Inc., has expanded with three new products: a 4.75-ounce Shower & Bath Gently Body Exfoliator and a 7.5-ounce Shower & Bath Moisturizing Shower Gel in Revitalizing Botanicals scent.
The Nivea Shower & Bath 2 in 1 Cleanser & Moisturizer in a 7.5- ounce container will be available in October. Also available in October will be an introductory "starter" kit containing a 1.7-ounce container of the cleanser/moisturizer and a Nivea blue and white body sponge in a clear carton.
