GlaxoSmithKline (GSK) and Pfizer have announced the closing of the joint venture that will combine the companies’ respective consumer healthcare businesses to create one of the world’s largest over-the-counter (OTC) business.
The Joint Venture, which was announced in December of last year, will bring together two ‘highly-complementary’ portfolios of trusted consumer health brands, including GSK’s Sensodyne, Voltaren and Panadol and Pfizer’s Advil, Centrum and Caltrate.
The new business is expected to realise annual cost savings of over half a million euro by 2022, up to a quarter of which are to be reinvested in the business to support innovation and other growth opportunities.
Under the terms of the transaction, GSK will own a 68% stake in the company, with Pfizer owning 32%. The Board make up will consist of six GSK appointees and three Pfizer appointees.
GSK Consumer Healthcare
The Joint Venture, which GSK intends to separate as an independent company via a demerger, will operate globally as GSK Consumer Healthcare.
The new company will be led by GSK’s Brian McNamara, who said the focus will now be on completing the integration of the two businesses.
“Now the deal has closed, our focus will be on completing the integration of these two businesses and leveraging their combined strength,” McNamara said.
“With our portfolio of brilliant, science-based brands and strong talent and capabilities, we are well-positioned to create a world-leading consumer healthcare business with stronger sales, cash flow and contribution to earnings.”
GSK in the future hopes to list the joint venture on the UK equity market, and the group has the sole right to decide whether and when to initiate a separation and listing for a period of five years following the closing.
GSK may also sell all or part of its stake in the joint venture in a contemporaneous IPO.
Emma Walmsley, Chief Executive Officer, GSK and Chair of the Joint Venture, said that the completion of the joint venture marks “the beginning of the next phase of our transformation of GSK”.
“This is an important moment for the Group, laying the foundation for two great companies, one in Pharmaceuticals and Vaccines and one in Consumer Health.”
© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click sign-up to subscribe to Checkout.