Sanofi-Aventis to acquire OTC maker Chattem

PARIS Sanofi-Aventis will acquire a manufacturer of OTC drugs, dietary supplements and toiletries, the French drug maker announced Monday.

Sanofi said it had made an agreement with Chattanooga, Tenn.-based Chattem to acquire the company for $1.9 billion, or $93.50 per share. Chattem, founded 130 years ago, manufactures brands such as Selsun Blue, Cortizone-10 and Icy Hot. Sanofi said the deal would create the world’s fifth largest consumer healthcare company.

“The acquisition of Chattem will be a significant milestone in Sanofi-Aventis’ transformation strategy and will provide us with the ideal platform in the U.S. consumer healthcare market, which represents 25% of the current worldwide opportunity,” Sanofi CEO Christopher Viehbacher said in a statement. “In addition, we believe our abilityt o convert prescription medicines to OTC products will be enhanced by Chattem’s leading sales, marketing and distribution channels.”