Germany-based Bayer has completed the acquisition of China-based Dihon Pharmaceutical Group, for CNY3.6bn (€460m).
Dihon produces over-the-counter (OTC) dermatology products and herbal traditional Chinese medicine (TCM) products for different health indications in women.
The transaction is expected to boost Bayer's Consumer Care business and places the company's HealthCare business as an OTC provider in a key growth country.
Bayer CEO Marijn Dekkers said: "This acquisition is further evidence of our aim to strengthen our Life Sciences portfolio with strategic bolt-on acquisitions.
"In conjunction with the recently completed acquisition of Merck Consumer Care, this acquisition moves us into the leading position in the OTC industry in China."
Headquartered in Kunming, Dihon's several manufacturing sites throughout China employs 2,400 people in R&D, manufacturing, sales and marketing.
The company manufactures OTC products such as Kang Wang for the treatment of dandruff and other scalp disorders, as well as TCM product Dan E Fu Kang for the treatment of various women's health indications.
Dihon's brands are also marketed in different countries such as Nigeria, Vietnam, Myanmar and Cambodia.
Bayer HealthCare CEO Olivier Brandicourt said: "Dihon's management team, shareholders and employees have built a strong business in China with a track record of success.
"We are delighted to bring Dihon's outstanding brands into our growing OTC portfolio and to leverage the knowledge and expertise of our new employee base to further grow and develop these self-care solutions to the benefit of consumers across China and other parts of the world."
In February, Bayer entered into an agreement to acquire Dihon.
Image: Office building of Bayer HealthCare located in Wedding district of Berlin, Germany. Photo: courtesy of ChristianSchd.