J&J Completes Its Final Step in Purchase of Pfizer Unit ; Sells 5 Health Care Brands to Chattem for $410M

By DANNY KING, BLOOMBERG NEWS

NEW BRUNSWICK Johnson & Johnson has completed its $410 million sale of five health care brands, including Cortizone itch cream and Kaopectate diarrhea medicine, to Chattem Inc. the final step in J&J’s $16.6 billion purchase of Pfizer Inc.’s consumer health care unit.

Chattem, owner of Selsun Blue shampoo, said in a statement that it acquired the brands using funds from a $300 million loan.

The sale also includes Unisom sleep medication, Balmex diaper- rash cream and Act mouthwash.

Johnson & Johnson, maker of thousands of health-care products, last month completed its cash acquisition of the Pfizer unit, with brands including Listerine mouthwash, Nicorette smoking-cessation treatments, and Sudafed cold, flu and allergy products.

Regulators reviewing that transaction required Tuesday’s sale, Chattanooga, Tenn.-based Chattem said when it agreed to buy the brands in October.

Chattem shares closed Friday at $50.08 after a decline of 64 cents in composite trading on the Nasdaq Stock Market. New Brunswick- based Johnson & Johnson fell 40 cents to $66.02 in New York Stock Exchange composite trading.

U.S. markets were closed Tuesday for the funeral of former President Gerald R. Ford.

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