Johnson and Johnson acquired Pfizer Consumer Healthcare in 2006. The deal was worth 16.6 billion dollars in cash. The deal was passed by the board of directors of Johnson and Johnson and clearance from the European Union merger control regulation was obtained. The acquisition of Pfizer Consumer Healthcare was a big boost to the expansion of the health care business of Johnson and Johnson. Johnson and Johnson has consistently ranked among the top companies in the global health care industry. The company employs more than 116,000 workers in 230 operating companies spanning 57 countries.
Johnson and Johnson's benefits from this merger in terms of market share is evident from the fact that in 2005, the year prior to the merger, Pfizer Consumer Healthcare had achieved sales worth 3.9 billion US dollars from its personal care and OTC (Over The Counter) products. With the takeover, Johnson and Johnson gained ownership rights of premier Pfizer brands like Listerine (for oral care) and Nicorrete (treatments for quitting smoking). Both these brands are market leaders in their own segments. Other prominent Pfizer brands over which Johnson and Johnson gained ownership rights due to the merger were - Neosporin, Benadryl, Zantac, Lubriderm, Sudafed and Visine.
Johnson and Johnson's own range of products includes acclaimed brands like Band Aid, Splenda and skin care products - Clean & Clear, Aveeno and Neutrogena. These products along with those acquired from Pfizer made Johnson and Johnson a premier company in the global health care industry. With the acquisition of Pfizer, Johnson and Johnson emerged as industry leaders in diversified segments that included mouthwash and quit smoking products. Johnson and Johnson's oral health care more than tripled with the addition of Listerine. It also enabled the expansion of Johnson and Johnson's franchise network in more than 60 markets. The merger led to several advantages in administration, sales and supply chain activities.
Last Updated on : 29th July 2013