EX-99.1
4
ex99-1_14910.htm
PRESS RELEASE DATED JANUARY 2, 2007
WWW.EXFILE.COM, INC. -- 14910 -- CHATTEM, INC. -- EXHIBIT 99.1 TO FORM 8-K/A
EXHIBIT
99.1
Chattem,
Inc. Completes Acquisition of
Certain
Consumer Brands from
Johnson
& Johnson
Chattanooga,
Tenn. - January 2, 2007 - Chattem, Inc.
(NASDAQ:
CHTT) - a leading marketer and manufacturer of branded consumer products, today
announced the closing of its previously announced agreement to acquire the
U.S.
rights to five leading consumer and over-the-counter ("OTC") brands from
Johnson & Johnson for $410 million in cash.
With
the
acquisition, Chattem's
diverse portfolio of high quality brands has
now
been expanded to include the following additional brands: ACT®, an anti-cavity
mouthwash/mouth rinse; UNISOM®, an OTC sleep aid; CORTIZONE, a hydrocortisone
anti-itch product; KAOPECTATE®, an anti-diarrhea product; and BALMEX®, a diaper
rash product. The
acquired brands were divested in connection with the recent acquisition by
Johnson & Johnson of Pfizer Inc.'s Consumer Healthcare business and certain
regulatory requirements in connection with that acquisition.
"We
are
very excited to add these leading brands to the Company's existing portfolio of
quality products", said Zan Guerry, Chairman and Chief Executive Officer of
Chattem. "With the tremendous cooperation of Johnson & Johnson and Pfizer
Inc., we have worked very hard over the past several months to help ensure
a
smooth transition of ownership and remain very excited about the growth
potential of these brands".
The
acquisition was funded in part with the proceeds from a new $300 million term
loan provided by Bank of America pursuant to a Fifth Amendment to and
restatement of its Credit Agreement, with the
remaining funds principally being provided through the use of a portion of
the
proceeds derived from Chattem's previously announced sale of 2% Convertible
Senior Notes due 2013.
About
Chattem
Chattem,
Inc. is a leading marketer and manufacturer of a broad portfolio of branded
OTC
healthcare products, toiletries and dietary supplements. The Company's products
target niche market segments and are among the market leaders in their
respective categories across food, drug and mass merchandisers. The Company's
portfolio of products includes well-recognized brands such as Icy Hot®, Gold
Bond®, Selsun Blue®, Garlique®, Pamprin® and BullFrog®. Chattem conducts a
portion of its global business through subsidiaries in the United Kingdom,
Ireland and Canada. For more information, please visit the Company's website:
www.chattem.com.
Certain
statements and information included in this release constitute "forward-looking
statements" within the meaning of the Federal Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of Chattem to be materially different from any
future results, performance or achievements expressed or implied in such
forward-looking statements. Additional discussion of factors that could cause
actual results to differ materially from management's projections, estimates
and
expectations is contained in Chattem's Annual Report on Form 10-K for the fiscal
year ended November 30, 2005 and the other documents Chattem files with the
SEC
from time to time. Chattem undertakes no duty to update its forward-looking
statements, including any such statements regarding the expected economic
benefits resulting from the acquisition.

EX - 99 . 1 4 ex99 - 1 _ 14910 . htm PRESS RELEASE DATED JANUARY 2 , 2007 WWW . EXFILE . COM , INC . -- 14910 -- CHATTEM , INC . -- EXHIBIT 99 . 1 TO FORM 8 - K / A EXHIBIT 99 . 1 Chattem , Inc . Completes Acquisition of Certain Consumer Brands from Johnson & Johnson Chattanooga , Tenn . - January 2 , 2007 - Chattem , Inc . ( NASDAQ : CHTT ) - a leading marketer and manufacturer of branded consumer products , today announced the closing of its previously announced agreement to acquire the U . S . rights to five leading consumer and over - the - counter ( " OTC " ) brands from Johnson & Johnson for $ 410 million in cash . With the acquisition , Chattem 's diverse portfolio of high quality brands has now been expanded to include the following additional brands : ACT ® , an anti - cavity mouthwash / mouth rinse ; UNISOM ® , an OTC sleep aid ; CORTIZONE , a hydrocortisone anti - itch product ; KAOPECTATE ® , an anti - diarrhea product ; and BALMEX ® , a diaper rash product . The acquired brands were divested in connection with the recent acquisition by Johnson & Johnson of Pfizer Inc . 's Consumer Healthcare business and certain regulatory requirements in connection with that acquisition . " We are very excited to add these leading brands to the Company 's existing portfolio of quality products " , said Zan Guerry , Chairman and Chief Executive Officer of Chattem . " With the tremendous cooperation of Johnson & Johnson and Pfizer Inc . , we have worked very hard over the past several months to help ensure a smooth transition of ownership and remain very excited about the growth potential of these brands " . The acquisition was funded in part with the proceeds from a new $ 300 million term loan provided by Bank of America pursuant to a Fifth Amendment to and restatement of its Credit Agreement , with the remaining funds principally being provided through the use of a portion of the proceeds derived from Chattem 's previously announced sale of 2 % Convertible Senior Notes due 2013 . About Chattem Chattem , Inc . is a leading marketer and manufacturer of a broad portfolio of branded OTC healthcare products , toiletries and dietary supplements . The Company 's products target niche market segments and are among the market leaders in their respective categories across food , drug and mass merchandisers . The Company 's portfolio of products includes well - recognized brands such as Icy Hot ® , Gold Bond ® , Selsun Blue ® , Garlique ® , Pamprin ® and BullFrog ® . Chattem conducts a portion of its global business through subsidiaries in the United Kingdom , Ireland and Canada . For more information , please visit the Company 's website : www.chattem.com . Certain statements and information included in this release constitute " forward - looking statements " within the meaning of the Federal Private Securities Litigation Reform Act of 1995 . Such forward - looking statements involve known and unknown risks , uncertainties and other factors which may cause the actual results , performance or achievements of Chattem to be materially different from any future results , performance or achievements expressed or implied in such forward - looking statements . Additional discussion of factors that could cause actual results to differ materially from management 's projections , estimates and expectations is contained in Chattem 's Annual Report on Form 10 - K for the fiscal year ended November 30 , 2005 and the other documents Chattem files with the SEC from time to time . Chattem undertakes no duty to update its forward - looking statements , including any such statements regarding the expected economic benefits resulting from the acquisition .