Pfizer Inc. (NYSE: PFE) and GlaxoSmithKline plc (NYSE:GSK) today announced they have entered into an agreement to create a premier global consumer hea
Source: www.businesswire.com
GlaxoSmithKline (GSk) and Pfizer have reached an agreement to form a Joint Venture for their consumer health businesses. The Joint Venture will have sales of approximately $12.7 billion. This combination will bring together two highly complementary portfolios of consumer health brands, including GSK’s Sensodyne, Voltaren and Panadol, and Pfizer’s Advil, Centrum and Caltrate. Under the terms of the agreement, Pfizer will receive a 32% equity stake, entitling Pfizer to its pro rata share of the joint venture’s earnings and dividends, paid on a quarterly basis. Pfizer can appoint three out of the nine members of the joint venture’s board. The transaction is expected to deliver $650 million in peak cost synergies and be slightly accretive for Pfizer in each of the first three years. Expected closure of the agreement following approval by GSK shareholders is set for the second half of 2019.
