U.K-Based Reckitt Benckiser To Acquire Adams Respiratory For $2.3 Billion In Cash

Dec 11, 2007 (financialwire.net via COMTEX) -- RBGPF | charts | news | PowerRating -- December 11, 2007 (FinancialWire) British household cleaning and personal care products maker Reckitt Benckiser Group has agreed to acquire over-the-counter drug maker Adams Respiratory Therapeutics Inc. (NASDAQ: ARXT | charts | news | PowerRating) for $2.3 billion in cash in a move to enter the U.S. consumer health care market.

Reckitt Benckiser, which makes Lysol disinfectant and Woolite laundry detergent, will pay $60 per share for, which represents a 37 percent premium to the stock's $43.68 closing price on Friday.

The deal has been approved by the boards of both companies and Reckitt Benckiser has said that it will finance the acquisition with cash on hand and existing credit facilities.

Adams makes and markets adult expectorant Mucinex and cough suppressant Delsym. For the fiscal year ended in June, the company had sales of $332 million.

The acquisition is subject to antitrust approvals in North America. Shares of Adams Respiratory surged $15.62, or 35.76 percent, to close at $59.30.

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