Ipsen stands to receive about €350 million for the business, including an earnout contingent payment of €50 million. The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close before the end of the third quarter this year.

According to Ipsen, the combination of the two consumer healthcare businesses will create a global platform with the critical size and capacity to support its growth.

Family owned Mayoly Spindler said it is aiming through the acquisition to become one of the world's leading gastroenterology and dermocosmetics companies. It added that the deal would accelerate the firm’s long-term ambition of being a top ten European OTC drugs player, as well as becoming one of the top five European OTC gastroenterology drugs providers over the next 10 years.

French financial firms Capza and Caravelle are providing some of the funds for the acquisition by acquiring a minority stake in the combined entity. "We are particularly pleased to support this ambitious growth project in an industry we know well, and to contribute to the creation of a French champion in consumer healthcare,” the companies commented.

Ipsen announced in December 2020 that it was undertaking a strategic review of its consumer healthcare business. The past couple of years has also seen major companies such as GlaxoSmithKline and Pfizer, Johnson & Johnson, Merck & Co and Sanofi spinning off their consumer healthcare businesses.

Author: Elaine Burridge, Freelance Journalist