Baby, Feminine and Family Care segment organic sales decreased 3%. Baby Care organic sales declined mid-single digits due to trade inventory reductions and competitive activity including reduced competitor pricing. Feminine Care grew organic sales low single digits driven by strong innovation performance on the Always/Whisper brand. Family Care organic sales decreased low single digits due to trade inventory reductions, increased trade merchandising spending and reduced competitor pricing.
Earlier this morning, P&G announced it has signed an agreement to acquire the Merck KGaA Consumer Health Care business, headquartered in Darmstadt, Germany, for a purchase price of approximately €3.4 billion. This move enables P&G to expand its successful over the counter (OTC) health care business by adding a fast-growing portfolio of differentiated, physician-supported, multi-region brands across a broad geographic footprint. It also provides P&G with strong health care commercial and supply capabilities, deep technical mastery and proven consumer health care leadership that will complement P&G's OTC capabilities and brands such as Vicks, Metamucil and Pepto-Bismol.
The Merck KGaA Consumer Health acquisition replaces and improves upon the highly successful PGT Healthcare joint venture P&G had with Teva Pharmaceutical Industries, which will be terminated July 1, 2018, pending regulatory approvals.
P&G’s OTC JV with Teva delivered disproportionate top and bottom-line growth and established a major presence in over 50 countries since its formation. However, following a recent review, Teva and P&G concluded that their priorities and strategies were no longer aligned and agreed terms where it would be mutually beneficial to terminate the joint venture. PGT product assets will return to the original parent company to reestablish independent OTC businesses.
P&G’s acquisition of Merck KGaA Consumer Health will improve P&G’s OTC geographic scale, brand portfolio and category footprint in the vast majority of the world’s top 15 OTC markets.
P&G said the acquisition is subject to customary antitrust reviews and approvals. Assuming no issues arise, the transaction is expected to be completed in fiscal year 2019.