Merck also expects the transaction to improve its flexibility to bolster its three business sectors – healthcare, life science and performance materials.
Its consumer health business has more than 900 products in its portfolio, which are sold across 44 countries.
They include a range of over-the-counter (OTC) product remedies to relieve muscle, joint and back pain, colds and headaches along with products for helping in physical activity and mobility.
Merck had earned €911m from the consumer health business in 2017.
Merck executive board chairman and CEO Stefan Oschmann said: “Consumer Health is a strong business that deserves the best possible opportunities for its future development.
“With P&G we have found a strong, highly recognized player who has the necessary scale to successfully drive the business going forward.”
P&G said that the acquisition will replace and improve upon the joint venture of PGT Healthcare and Teva Pharmaceutical Industries which will be scrapped on 1 July 2018, subject to regulatory approvals.
Some of the brands included in the transaction are Neurobion, Femibion, Nasivin, Dolo-Neurobion, Bion3, Kytta and Seven Seas which are sold mainly in Europe, Asia and Latin America.
P&G Ggobal personal health care president Tom Finn said: “These leading brands and the great employees of the Consumer Health business of Merck KGaA, Darmstadt, Germany, will complement our Personal Health Care business very well.
“This acquisition helps us continue to drive sales and profit growth for P&G by providing the capabilities and portfolio scale we need to operate a winning global OTC business on our own, without the aid of a health care partner.”
Also part of the transaction are two consumer health-managed production facilities in Spittal, Austria and Goa, India.
The transaction will be subject to regulatory approvals and customary closing conditions, following which it is expected to be completed by the end of the fourth quarter of this year.
Image: Some of the OTC brands of Merck’s consumer health business. Photo: courtesy of Business Wire.