Brands
Discover
Events
Newsletter
More

Follow Us

twitterfacebookinstagramyoutube
ADVERTISEMENT
Advertise with us

Dr Reddy’s inks pact with Haleon plc to acquire its NRT portfolio for GBP 500M

The proposed acquisition will be inclusive of all formats such as lozenge, patch, gum as well as pipeline products, in all applicable global markets outside of the United States, it said.

Dr Reddy’s inks pact with Haleon plc to acquire its NRT portfolio for GBP 500M

Thursday June 27, 2024 , 3 min Read

Dr Reddy'sLaboratories on Wednesday said it has signed a definitive agreement with Haleon, a leading consumer healthcare company, for purchase of shares of its group company Northstar Switzerland SARL, to acquire a global portfolio of consumer healthcare brands outside of the United States for a total consideration of GBP 500 million.

A press release from the company said Dr Reddy's will acquire Haleon's global portfolio of consumer healthcare brands in the Nicotine Replacement Therapy ('NRT') category consists of Nicotinell, a global leader in the category with an extensive footprint in over 30 countries spanning Europe, Asia including Japan, and Latin America and local market-leading brand names of the product–Nicabate in Australia, Thrive in Canada, and Habitrol in New Zealand and Canada.

The proposed acquisition will be inclusive of all formats such as lozenge, patch, gum as well as pipeline products, in all applicable global markets outside of the United States, it said.

Nicotinell is the second biggest brand globally (excluding the United States) in the NRT category. It holds the first or second position in 14 of the top 17 global markets, with the lozenge/ mini lozenge format holding top position globally.

Nicotinell ranks among the top 15 biggest brands among all OTC brands in Europe (excluding Russia, Italy), and ranks 32 among all OTC global brands (excluding the US). The portfolio generated approximately GBP 217 million in revenue in 2023.

"Dr Reddy’s will acquire the share capital of Northstar Switzerland SARL for a total consideration of GBP 500 million with an upfront cash payment of GBP 458 million and performance-based contingent payments of up to GBP 42 million, payable in 2025 and 2026," it said.

The closing of the transaction is subject to satisfactory completion of customary conditions to closing, including regulatory approvals. The transaction is expected to close in early Q4 of calendar year 2024, it further said.

Upon closing of the transaction, Dr Reddy’s will acquire the NRT business in all countries outside of the United States. However, operations will transition to Dr Reddy’s in a phased approach to ensure successful integration of the business.

Erez Israeli, Chief Executive Officer of Dr Reddy's said, "We see the acquisition of this global portfolio of consumer healthcare products led by the global brand Nicotinell as a logical extension of our efforts in consumer healthcare OTC in recent years, and of our purpose of ‘Good Health Can’t Wait.'

The business to be acquired from Haleon has maintained steady sales and strong profitability over the years. The portfolio is attractive for its customer loyalty, its global nature, and the access it provides to key customers, he further said.


Edited by Megha Reddy