Oct. 28 (Bloomberg) -- Sanofi-Aventis SA agreed to buy BMP Sunstone Corp., the maker of the Hao Wa Wa brand of children’s cough and cold treatments, for $520.6 million in cash to expand in Chinese consumer health-care products.
BMP Sunstone stockholders will receive $10 a share, about 30 percent more than yesterday’s closing price on the Nasdaq Stock Market, Paris-based Sanofi said in a statement today. BMP Sunstone’s board approved the sale, and shareholders who own 23 percent of the Beijing-based company’s stock agreed to support the deal, Sanofi said.
China’s $16.7 billion consumer health-care market is the world’s second-largest after the U.S. and has grown 11 percent annually in the past five years, Sanofi said. The company is expanding in emerging markets and consumer products to replace revenue it’s losing as patents expire on some of its best-selling pharmaceuticals.
Sanofi has made a hostile, $18.5 billion bid for Genzyme Corp., a Cambridge, Massachusetts-based drugmaker. In March, Sanofi paid $1.9 billion for Chattem Inc., the consumer-health company that makes Gold Bond powders.
Hao Wa Wa, which means Good Baby, is China’s top pediatric cold brand, Sanofi said. BMP Sunstone also makes Kang Fu Te brand hygiene products for women, the company said.
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