P&G to acquire German Merck’s consumer health business
Procter & Gamble is growing its global footprint with its latest acquisition. The Cincinnati-based company will be acquiring the consumer health business of Darmstadt, Germany-based Merck KGaA for roughly €3.2 billion, or roughly $3.9 billion, P&G said Thursday. The company also will be terminating its joint venture with Teva.
P&G executives said that the acquisition would grow its geographic scale and footprint in most of the world’s top 15 OTC markets, adding products in such categories as muscle, joint and back pain, as well as cold and headaches that the company previously lacked. Currently, P&G is ranked ninth in the $233 billion global consumer health market based on sales, according to Euromonitor. Merck KGaA’s $1 billion consumer health business includes more than 900 products in 44 countries, and grew 6% in the past two years, the companies said. Top brands — sold largely in Europe, Latin America and Asia — include Neurobion, Dolo-Neurobion, Femibion, Nasivin, Bion3, Seven Seas and Kytta
“Over the past few years, our healthcare business has delivered consistent growth and strong shareholder value creation,“ said Steve Bishop, P&G group president of global health care. “The consumer health business of Merck KGaA, Darmstadt, Germany, brings a strong set of brands, products and capabilities, and provides an attractive and complementary footprint to further fuel growth as we continue to grow our existing leading brands.”
P&G global personal health care president Tom Finn said, “This acquisition helps us continue to drive sales and profit growth for P&G by providing the capabilities and portfolio scale we need to operate a winning global OTC business on our own, without the aid of a health care partner.”
The company said it was ending its partnership with Teva following a recent review the determined the two companies’ strategies and priorities to be out of sync. Products within the PGT Healthcare joint venture will be returned to their respective companies, and the partnership will officially terminate on July 8, pending regulatory approval.
Merck, in selling the consumer health unit, said that the sale was aimed at focusing its business on health care, life science and performance materials as a science and tech company. “With this transaction, we continue to rigorously deliver on our strategy to become a global specialty innovator and bring breakthrough medicines to patients,” Merck KGaA executive board member Belén Garijo said.
Good Clean Love expands
In a testament to the growth of organics in the personal care sector, intimacy products manufacturer Good Clean Love, has expanded distribution through more than 10,000 doors in 2017, including Target, Safeway, CVS Pharmacy, Rite-Aid, Whole Foods, Walmart and Publix. Its products used to be exclusively sold at Kroger.
Its personal lubricant lineup includes the patented Bio-Match Restore, which Good Clean Love said mimics the body’s natural equilibrium for a bio-matched lubricating response. Restore is a natural moisturizer that the company said may help with vaginal dryness, itching and odor, and promotes maintenance of healthy vaginal flora.
LifeStyles focuses on intimacy spectrum
LifeStyles is bringing innovation to the intimacy health set in spades. The Iselin, N.J.-based company recently released its Skyn Elite, a condom that LifeStyles said is 20% thinner than the original Skyn brand. Already, it’s the fastest-growing Skyn product in the market, according to the company.
LifeStyles brand also recently launched its thinnest product to the market — Lifestyles Zero — which the company said is 52% thinner than the original.
Within personal lubricants, LifeStyles l is focusing on products that are free from parabens. “Our recent launch of Skyn Intimate Moments is an example of these advancements in lube formulation,” Jeyan Heper, CEO of LifeStyles, said. “ … our new Skyn Vibe launch sets the standard for quality in the vibrations segment.”