Northern-Irish drug maker Warner Chilcott has agreed to buy the prescription drugs unit of Proctor & Gamble (P&G) for around $3.1 billion (Ôé¼2.1 billion).
Cincinnati, US-based P&G has been seeking a buyer for the unit for several months since it announced it was interested in exiting the prescription drugs business in favour of over-the-counter products.
Drug approval processes have become increasingly complicated of late, making investments in pharmaceuticals less profitable.
The deal is expected to more than double Ardee, Ireland-based Warner ChilcottÔÇÖs annual revenue, as well as increasing its share of the womenÔÇÖs health market. Currently it has a sales forecast of $1 billion (Ôé¼700 million) for this year.
The companyÔÇÖs primary business areas are womenÔÇÖs healthcare and dermatology.
Six banks are expected to put up around $4 billion in financing, including $1 billion to re-finance existing Warner Chilcott debt.
Warner Chilcott currently has 1,115 employees in Ireland, the UK, the US and Puerto Rico.
In October last year, P&G sold its Folgers coffee arm to US firm JM Smucker for $3 billion.
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