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Bayer to Acquire Roche Consumer Health

Bayer to Acquire Roche Consumer Health

LEVERKUSEN, GermanyBayer has agreed to acquire Roche Consumer Health (RCH) for 3.6 billion Swiss francs. According to Bayer, the acquisition of RCH will make Bayer one of the top three over-thecounter (OTC) consumer health companies worldwide.

Under the terms of the agreement, Bayer will acquire Roches 50 percent share of the 1997 Bayer/Roche joint venture in the U.S. and five Roche production sites in Grenzach, Germany; Gaillard, France; Pilar, Argentina; Casablanca, Morocco; and Jakarta, Indonesia. The OTC business of the Japanese company Chugai, in which Roche has a majority stake, is not included in the deal. The combined company will have sales of EUR2.4 billion and 6,700 employees in 120 countries.

The EUR2.38 billion transaction is subject to approval by antitrust authorities.

Bayer HealthCares Consumer Care Division and Roche Consumer Health have historically relied on building their long-standing analgesic, dermatological, gastrointestinal and nutritional brands, including Bayers One-A-Day line of multivitamin supplements.

Assuming the transaction closes (between late 2004 and early 2005), Bayer expects its earnings per share (EPS) to reach 0.25 EUR/share and anticipates positive results beginning in 2006. The synergy potential is estimated at approximately EUR100 million to EUR200 million and will be realized gradually over the next three years.

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