Chattem Announces Agreement to Acquire Remaining Worldwide Rights to ACT(R) from Johnson & Johnson.CHATTANOOGA, Tenn. -- Chattem, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CHTT) - a leading marketer and manufacturer of branded consumer products, today announced that it has entered into an agreement to acquire the rights to ACT[R], a branded over-the-counter ("OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). ") anti-cavity mouthwash/mouth rinse, in Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). together with worldwide trademark rights from Johnson & Johnson for $4.1 million in cash plus certain assumed liabilities. The transaction has received the approval of the European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community , and subject to certain closing conditions, is expected to close towards the end of May 2007. Chattem acquired the U.S. rights to ACT from Johnson & Johnson as a part of its acquisition of five OTC brands in a transaction that closed on January 2, 2007. The rights to ACT in Western Europe are being divested by Johnson & Johnson as a condition to the European Commission's approval of Johnson & Johnson's acquisition of Pfizer Consumer Healthcare and certain regulatory requirements in connection with that acquisition in Greece. To fund the transaction, Chattem will either utilize existing cash or borrow from its existing senior secured revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. "This acquisition will provide Chattem with a strategic vehicle to expand the ACT franchise in international markets," said Zan Guerry, chairman and chief executive officer. "The U.S. ACT business can serve as a foundation for new product development in the countries where ACT is currently sold which include Switzerland, Greece, Netherlands, Belgium and Luxemburg and for the introduction of ACT in additional markets," continued Guerry. "Disciplined and strategic international acquisitions are a component of growth for us and this acquisition complements Chattem's acquisition of ACT in the U.S. and the Selsun international business in 2002." About Chattem Chattem, Inc. is a leading marketer and manufacturer of a broad portfolio of branded OTC healthcare products, toiletries toi·let·ry n. pl. toi·let·ries An article, such as toothpaste or a hairbrush, used in personal grooming or dressing. toiletries npl → artículos mpl de aseo (= and dietary supplements. The Company's products target niche market A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. segments and are among the market leaders in their respective categories across food, drug and mass merchandisers. The Company's portfolio of products includes well-recognized brands such as Icy Hot[R], Gold Bond[R], Selsun Blue Selsun Blue is a shampoo, developed by Ross Laboratories, a subsidiary of Abbott Laboratories and later bought by Chattem, that functions as an over-the-counter treatment for dandruff. [R], ACT[R], Cortizone and Unisom[R]. Chattem conducts a portion of its global business through subsidiaries in the United Kingdom, Ireland and Canada. For more information, please visit the Company's website: www.chattem.com. Certain statements and information included in this release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Chattem to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. Additional discussion of factors that could cause actual results to differ materially from management's projects, estimates and expectations is contained in Chattem's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended November 30, 2006 and the other documents Chattem files with the SEC from time to time. Chattem undertakes no duty to update its forward-looking statements, including any such statements regarding the expected economic benefits resulting from the acquisition. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion