Reckitt Benckiser is entering the multibillion vitamin and nutrition market with the $1.4bn (£880m) acquisition of Schiff Nutrition.
Reckitt outbid its German rival Bayer for the US company as it seeks to broaden its personal products range in North America.
Reckitt's chief executive, Rakesh Kapoor, said: "Schiff's portfolio is an excellent fit with our strategic focus on health and hygiene, where in healthcare in the USA we already have Mucinex, Delsym, Cepacol and Durex as major brands."
Drug companies are focusing more and more on additional markets to offset declines in the prescription drug market and competition from generic rivals.
The global business in vitamins, minerals and supplements is worth about $30bn and is expected to grow further. Germany's BASF this week bought fish oils maker Pronova BioPharma for $845m to boost its position in health supplements.
The purchase of the Salt Lake City based firm brings Reckitt a new portfolio including MegaRed for heart care, Move Free for joints and Tiger's Milk nutrition bars to add to existing health products such as Gaviscon for heartburn and Strepsils for sore throats.
Synergies should be realised as soon as possible, said Kapoor. Schiff's board of directors approved the previously announced cash tender offer of $42 a share and recommended shareholders accept the deal. Reckitt, well-known for brands such as Calgon, Vanish and Cillit Bang, expects the tender offer to close before the end of the year.
Bayer said earlier this week that it would not increase its own offer of $1.2bn, or $34 a share. As Schiff had already agreed to Bayer's offer it will pay the German comany a $22m fee to terminate the earlier deal.
Reckitt's tender offer of $1.4bn represents a high premium and expresses the expectations the Slough-based company has for this business field. Shares of Schiff rose 0.1%. Its shares are up nearly 81% since the beginning of the bidding war in late October. Shares of Reckitt added 0.6% in an upbeat UK market.
