Merck KGaA, Darmstadt, Germany, has successfully completed the sale of its Consumer Health business to Procter & Gamble (P&G), following close consultation with employee representatives, the approval of all relevant regulatory authorities and the fulfillment of other customary closing conditions. The business transferred to P&G on Dec. 1, 2018. The cash purchase price is approximately €3.4 billion.
 
“The successful completion of this transaction is an important milestone for both Merck KGaA, Darmstadt, Germany, and Consumer Health,” said Belén Garijo, member of the Executive Board and CEO Healthcare of Merck KGaA, Darmstadt, Germany. “We are very pleased that together with P&G we have successfully delivered on an ambitious timeframe in closing this transaction. P&G offers excellent opportunities for the development of the Consumer Health business and we wish our colleagues all the best for the future.”
 
“After deducting taxes and transaction-related effects, we will primarily use the net cash proceeds of approximately €2.7 billion to further reduce our financial debt. With the successful and timely completion of the transaction, we have now hit our 2018 leverage target of a net debt to EBITDA pre ratio of less than 2. Furthermore, we are increasing our flexibility to focus on innovation-driven businesses within our three business sectors,” said Marcus Kuhnert, member of the Executive Board and CFO of Merck KGaA.
 
The transaction comprises the Consumer Health business in 44 countries with more than 900 products and two production facilities in Spittal, Austria, and Goa, India. Approximately 3,300 employees have transferred to P&G.