The German pharmaceutical and chemical group Merck has reached an agreement to sell its consumer health business to the American giant Procter & Gamble (P&G), with the revenue intended primarily for debt repayment.
According to Merck’s statement from Thursday, the net proceeds from the sale of this business will be used “primarily for faster debt reduction” but also to provide additional financial support to key parts of the business – health care, life sciences, and innovative materials.
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As part of the agreed cash transaction amounting to €3.4 billion, approximately 3,300 Merck employees will be transferred to the American consumer goods giant, the German company further stated.
The completion of the transaction is expected by the end of this year.
Last September, Merck announced that it was considering options for its health-related business, including a possible sale, AFP recalls.
According to P&G’s CEO David Taylor, the American company benefits from stable and broadly distributed growth in the over-the-counter health products market.
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Merck’s consumer health business includes more than 900 products sold in 44 countries worldwide and has outpaced the overall market growth in the last three years, the German giant emphasized.
Founded in 1668, German Merck is the oldest chemical and pharmaceutical company in the world, with approximately 53,000 employees worldwide. Last year, they generated revenues of €25.3 billion.
