Procter & Gamble (PG-Quote) announced that it plans to sell its prescription drug division to Warner Chilcott (WCRX-Quote) on Monday, in a deal that will be worth $3.1 billion.
The move is in line with Procter & Gamble’s desire to shed non-core businesses that have experienced slower-than-average growth in recent years.
The deal marks a milestone for P&G’s new chief executive, Bob McDonald, who moved into his current position in July.
"We know that our shareholders don't reward us for size. They reward us for growth," said McDonald on a conference call. "We are going to do what we have to do to get the right portfolio of businesses together. We are focused on growth."
The sale is expected to be completed by the end of the year.
Disclosure I am long PG shares.
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