GSK buys Stiefel for $3.6bn
pharmafile | April 20, 2009 | News story | Research and Development, Sales and Marketing |Â Â GSK, MAÂ
GSK has acquired Stiefel, the world's largest independent dermatology company, in a deal valued up to $3.6 billion.
The move follows signals from the company that it would seek out small to medium-sized acquisitions instead of bowing to the recent trend for large-scale mergers.
Chief executive Andrew Witty said that as part of its strategy to grow and diversify the business it would make new investments through such targeted acquisitions.
He added: "This transaction will create a new world-leading, specialist dermatology business and re-energise our existing dermatology products.
"The addition of Stiefel's broad portfolio will provide immediate new revenue flows to GSK with significant opportunities to enhance growth through leveraging our existing global commercial infrastructure and manufacturing capability."
GSK will acquire Stiefel for $2.9bn cash. GSK also expects to assume $0.4bn of net debt upon closing. A potential further $0.3bn cash payment could follow on future performance.
Under the agreement, GSK's existing prescription dermatological products will be combined with Stiefel's and the new specialist global business will operate under the Stiefel identity within the GSK Group.
Stiefel's chief executive Charles Stiefel said: "The combination of Stiefel and GSK will create a leading company in global dermatology with a strong presence in the prescription, consumer and aesthetic skin health markets.
"Along with adding hundreds of marketed dermatology products, this deal will increase the value of Stiefel's unparalleled dermatology pipeline by expanding the customer base to which we will be able to offer these products. It also gives GSK access to one of Stiefel's greatest assets – its valued relationships and shared understanding with dermatologists around the world."
Charles Stiefel will continue in current role until the transaction is completed, after which he will lead the new business.
Stiefel is a private company controlled by the Stiefel family and part owned by private equity firm the Blackstone Group.
It was established in 1847 and specialises in prescription and over-the-counter skin care products, including acne washes and other skin treatments.
GSK's acquisition of Stiefel comes at a time of increasing consolidation for the industry.
It follows three larger pharma deals r this year as companies move to diversify – Pfizer's payment of $65bn for Wyeth, Merck & Co's $46bn takeover of Schering Plough, and Roche's $47bn buyout of Genentech.
Related stories:
Roche buys out Genentech with increased bid
Thursday, March 12, 2009
Merck unveils $41 billion takeover of Schering-Plough
Monday, March 09, 2009
Pfizer unveils $68 billion takeover of Wyeth
Monday, January 26, 2009
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