J&J Closes Pfizer Deal

27 June 2006

US healthcare mammoth Johnson & Johnson has inked a $16.6 billion (€13.2bn; £9.1bn) deal to buy the consumer product unit of pharma giant Pfizer.

New York-headquartered Pfizer is selling DTC brands such as Listerine and Nicorette. They will join New Jersey-based J&J's stable which includes Tylenol and Neutrogena.

The unit was put up for sale in February. Other bidders included GlaxoSmithKline and UK household cleaning products maker Reckitt Benckiser.

Pfizer's decision to sell was prompted by its focus on prescription drugs, its most profitable business line.

The consumer products unit accounted for less than 8% percent of Pfizer's $52bn in sales last year and about 4% of operating profit.

Data sourced from Financial Times online; additional content by WARC staff