J&J Acquires Zarbee’s To Bolster Consumer Brands

Johnson & Johnson acquired Zarbee’s Naturals, a leading maker of children cough-syrup. The deal will see Zarbee’s integrated into Johnson & Johnson’s consumer-health branch.

Targeting more health-conscious patients

In a statement, J&J said the acquisition will allow it move faster in trying to reach more health-conscious parents. This will, in turn, boost sales from the newly-acquired unit. J&J, which has its headquarters in New Jersey, has been a majority shareholder in Zarbee’s for as long time. Both parties did not disclose the value of the transaction.

In a statement, Katie Devine, the global president for over-the-counter products with J&J’s consumer business said that the company is seeking to add more natural products on its offerings in the U.S market.

Zarbee’s Naturals™ was started in 2008. The company was founded by Dr. Zak Zarbock who was inspired to develop wholesome, safe and effective alternatives to the OTC medicines that are currently in the market. Zarbock first produced a honey-based kids’ cough syrup. The syrup was made with zinc, Vitamin C and is free from drugs, alcohol and artificial flavors.

Zarbee’s Naturals™ has been growing and for the last decade, the company has evolved into a broad-based health and wellness brand. Zarbee’s Naturals™ has been leading innovations for the cure of a cough, boosting sleep and the immune system as well as several types of vitamins. The company’s line of products is family-friendly.

Meeting the changing health needs

Devine indicated that value-addition is the main driving force in all Zarbee’s operations. She noted that since its launch, the company has recorded significant growth both in terms of customer base and the cash book. She said that J&J, being a global leader in OTC shares Zarbee’s vision.

On the other hand, Kathy Widmer, President, U.S. OTC at J&J said that Zarbee’s Naturals™ will allow them to offer a comprehensive package of products in several states throughout the U.S. She noted that since its launch, Zarbee has been a success in the market and the partnership will open even more niches.

The deal will be closed after the parties meet all the conditions of the Hart-Scott-Rodino Antitrust Improvements Act as well as other regulatory conditions. The transaction will be closed in the third quarter of this year.

J&J says the move to acquire Zarbee’s Naturals™ has been motivated by the fact that there has been a tremendous increase in demand for natural products as compared to traditional OTC medicine medicines.

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