American consumer products major Procter & Gamble Company will be selling its global pharmaceuticals business to Ireland-based Pharma entity Warner Chilcott Plc for about USD 3.1 billion.
The transaction is expected to be completed by the end of this year, subject to regulatory approvals.
Both companies in a statement today said they have entered into an agreement for the proposed acquisition, for an up-front cash payment of USD 3.1 billion.
As part of the agreement, Warner Chilcott would acquire P&G's portfolio of branded pharmaceutical products, including Asacol HD (mesalamine) Delayed-Release Tablets for ulcerative colitis and Actonel (risedronate sodium) for osteoporosis.
The Irish firm would also buy P&G's prescription drug product pipeline and manufacturing facilities in Puerto Rico and Germany.
Most of the 2,300 employees working on P&G's pharmaceuticals business is expected to move to the Irish firm.
"The acquisition transforms Warner Chilcott into a global pharmaceutical company, expands our presence in women's healthcare, establishes us in the urology market in advance of the anticipated launch of our erectile dysfunction treatments, and adds gastroenterology therapies to our product portfolio," Warner Chilcott's President and CEO Roger Boissonneault said.
The sale of pharmaceuticals business for USD 3.1 billion would result in a one-time earnings increase for P&G of about USD 1.4 billion after-tax.