| CATEGORY: NEWS AND ANNOUNCEMENTS SECTOR: HOUSEHOLD GOODS & HOME CONSTRUCTION |
Reckitt coughs up £1.1bn for Adams |
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Mon 10 Dec 2007
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LONDON (SHARECAST) - Household products group Reckitt Benckiser has agreed to pay $60 a share for US drugs group Adams Respiratory Therapeutics in a deal worth $2.3bn, or £1.1bn.
Adams, a specialty pharmaceutical company listed on Nasdaq, is exclusively focused on treatments for respiratory disorders.
"We also expect to realize substantial cost synergies as a result of integration of Adams into Reckitt Benckiser,” said chief executive Bart Becht.
“The deal is expected to be immediately earnings enhancing excluding a $60m one-off restructuring charge."
The group’s cough and congestion relief treatment Mucinex, which represents most of its sales, and cough suppressant Delsym, will provide Reckitt an entry into health care in the US, the world's largest OTC market.
Adams' net sales have grown from $14m in the year ending June 2003 to $332m for the 12 months to June 2007. Income before tax for the year ending June 2007 was $48m.
A key driver of growth has been the approval by the US Food and Drug Administration in 2002 of the Mucinex patent protected extended-release guaifenesin product for chest congestion relief.
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