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Reckitt Benckiser Plc (RB) Buys Adams Respiratory Therapeutics (ARXT) cough treatments for $2.3 bln

Reckitt Benckiser Plc (RB) has agreed to purchase U.S. cough and congestion medicine group Adams Respiratory Therapeutics (ARXT) for $60 a share, or $2.3 billion, in cash. This move will mark Reckitt’s entry into the U.S. healthcare market.

Reckitt, the world’s largest household goods maker, is seeking to expand into the health care market within the United States. This particular offer will aid Reckitt’s expansion into this industry, as the company has also purchased Boots’ Nurofen pain killers and Strepsil throat lozenges last year.

Adams Respiratory Therapeutics is a NASDAQ-listed specialty pharmaceutical group headquartered in Chester, New Jersey. Currently, Adam’s markets two non-prescription, over the counter cough treatments: Mucinex and Delsym.

Chief Executive of Reckitt, Bart Becht, stated, “Reckitt expects that this agreement will double the size of the Adams business within five years and push margins to 35 percent or around those of the ex-Boots business. This deal will also give us an excellent platform to enter the U.S. healthcare market.”

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