Germany’s Merck is selling its consumer health unit to Procter & Gamble for around for 3.4 billion Euros.
Merck said last year that is was mulling over the future of its consumer health division, and that a sale would help it execute its science and technology focused strategy.
Stefan Oschmann, chairman of the executive board and Merck’s chief executive, said the move “is a clear demonstration of our continued commitment to actively shape our portfolio as a leading science and technology company.”
“Consumer Health is a strong business that deserves the best possible opportunities for its future development. With P&G we have found a strong, highly recognised player who has the necessary scale to successfully drive the business going forward.”
Merck said sales from its consumer health unit grew organically by 6 percent between 2015 and 2017, “outpacing the consumer health market’s growth of approximately 4 percent over the same period”. The business pulled in new sales of around $911 million last year.
“We like the steady, broad-based growth of the OTC healthcare market and are pleased to add Merck’s Consumer Health portfolio and people to the P&G family,” added David Taylor, P&G Chairman of the board, president and chief executive.
The transaction, which is expected to close by the end of the fourth quarter 2018, is subject to regulatory approvals and other customary closing conditions.
As part of the transaction, around 3,300 employees are expected to transition to P&G, subject to prior works council consultation where required.