published Monday, December 21st, 2009

Sanofi-Aventis to buy Chattanooga-based Chattem for $1.9 billion

PARIS — A French drug maker announced today it wants to buy the more than 100-year-old Chattem Inc. of Chattanooga for about $1.9 billion in a cash deal.

Sanofi-Aventis SA said the transaction will lead to the creation of the world’s fifth largest consumer health care company.

Paris-based Sanofi-Aventis said it will offer $93.50 per share to acquire 100 percent of Chattem, a Chattanooga, Tennessee based maker of consumer healthcare products such as Gold Bond skin care creams and Icy Hot pain relief medecine.

In a statement Sanofi-Aventis said it will launch its public tender offer for Chattem in January, and it expects to complete the acquisition in the first quarter of 2010.

Chattem’s management will remain in place following the takeover, Sanofi-Aventis said.

Sanofi-Aventis said it would maintain both of Chattem’s existing manufacturing facilities in Chattanooga and will continue construction on a third.

Last year Chattem had 488 employees and reported revenue of $455 million.

Chattem was founded as Chattanooga Medicine Co. It is currently carrying out a $35 million expansion of its Broad Street plant in Chattanooga.

See tomorrow’s Chattanooga Times Free Press for complete coverage.

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rolando said...

And yet another American company is taken over by foreign ownership. More money from sales flowing overseas; jobs to follow soon.

Watching our long and slow decline has been...ah...painful.

Bread and circus. The Emperorship has gone on sale; Louisiana and Nebraska are the first bidders...$300 million is the high bid.

December 21, 2009 at 10:17 a.m.
Michah3 said...

The jobs are not going overseas. Aventis is keeping the manufacturing and marketing of Chattem's products in Chattanooga. The brand names will remain the same and they will still be sold under the corporate name of Chattem. Aventis does not know much about selling and marketing OTC products. They are allowing Chattem to maintain their people and autonomy.

December 21, 2009 at 5:46 p.m.
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