Glaxo acquires CNS for $566 million

LONDON - Europe's biggest drug maker GlaxoSmithKline Plc today announced that it has agreed to buy American firm CNS for $566 million. Glaxo will pay $37.50 per share for the consumer health firm, which represents a 31 percent premium over CNS' closing share price last Friday.CNS is well known for products like Breathe Right nasal strips and FiberChoice dietary fibre supplements. Glaxo said the deal would be formalized early next year. It added that the agreement was subject to approval by the shareholders in CNS as well as antitrust clearance.CNS, which is based in Minneapolis, reported sales of $118.5 million in the year ending June 2006. The company's main customer base is in the US with 86 percent sales conducted in mainland America. Breathe Right is marketed in 27 countries globally, while FiberChoice is only for US markets."This outstanding business provides a great global growth opportunity for GSK," said John Clarke, President, GSK Consumer Healthcare. "The opportunity for growth through geographic expansion and pipeline innovation make this acquisition an exciting prospect."His CNS counterpart Marti Morfitt said the deal provided good value for the company's shareholders. "I am proud of our achievements at CNS and the success we have built around our brands, and am happy that our good work will continue with GSK as these brands realize their worldwide potential," he added.Sawaya Segalas & Co., LLC was the adviser for CNS, which reviewed potential suitors before settling on GSK.