P&G Exec: The Entire Board Was Supportive of Our $4.2 Billion Deal

Oh to be a fly on the wall inside of P&G’s (PG) boardroom during the review process for its big healthcare deal disclosed Thursday. 

“What I will tell you is that the entire board was strongly supportive of this deal, the merits of it were just obvious, the strengths of the transaction were obvious, the valuation looked strong and accretive,” Tom Finn, P&G’s president of its global personal healthcare business, told TheStreet when asked about the board dynamics during the deal’s review process. When asked about Nelson Peltz’s, P&G’s newest board member, thoughts on the deal Finn declined to comment on specifics of the board’s discussions.

“The board was very supportive, and they thought we did a very thorough and good job valuing the transaction.”

Procter & Gamble agreed Thursday to buy the consumer healthcare unit of Germany’s Merck KGaA for around $4.2 billion in the first major purchase for the group since activist investor Nelson Peltz won a seat on the board late last year.

Procter & Gamble will pay 3.4 billion ($4.21 billion) for the division, which includes brands such as Seven Seas and Neurobion vitamins, in a deal that is expected to close in the fourth quarter of this year. Darmstadt, Germany-based Merck said around 3,000 employees will ultimately shift over to the P&G stable once consultations with works councils are completed.

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