TRENTON, N.J. — French drugmaker Sanofi-Aventis said Monday it plans to buy U.S. health care company Chattem, maker of over-the-counter mainstays like Gold Bond skin products, for $1.9 billion in cash.
The deal also gives Sanofi-Aventis a distribution base for its popular allergy drug Allegra, which is awaiting approval to switch from prescription-only to an over-the-counter version, and for future switches of other drugs approaching the end of their patents.
Paris-based Sanofi-Aventis said it will offer $93.50 a share — 44 percent more than Chattem’s average price over the past six months. The Chattanooga, Tenn., company makes two dozen consumer health care products, including Icy Hot pain relief medicine and Selsun Blue shampoo.
Chattem shares skyrocketed on the news, jumping $23.16, or 33 percent, to $93.14. In New York trading, Sanofi-Aventis shares edged down 4 cents to $39.07.
“Chattem is the ideal entry for us in this market,” Sanofi Chief Executive Chris Viehbacher told reporters during a conference call.
Chattem ranks among the top 10 U.S. consumer health companies but sells little in other countries. Sanofi-Aventis is the world’s top maker of vaccines and fifth-biggest prescription drugmaker by revenue, with blockbusters including blood thinners Plavix and Lovenox and Lantus insulin.
