Sanofi-Aventis Buys Chattem, a Leader in Over-the-Counter Sales

Sanofi-Aventis (SNY) announced Monday it will acquire Chattem Inc. (CHTT) for about $1.9 billion -- paying $93.50 per share, a 34% premium over Chattem's closing price Friday. The deal will create the world's fifth-largest consumer health-care company by revenues and helps the French drugmaker diversify into over-the-counter and consumer brands, a strategy used by Johnson & Johnson (JNJ), and one many pharmas seek to adopt before the coming patent cliff.