CHATTANOOGA, Tennessee - A business move by the Chattem Corporation could have a significant impact on the Chattanooga's economy.
On Tuesday, Chattem acquired the world-wide rights to the Rolaids brand for an undisclosed amount of money from the health care division of McNEILL, Corporation.
Rolaids is an over-the-counter antacid that helps relieve heartburn and acid indigestion.
Chattem executive vice president, Robert Long said this acquisition will give not only rake in more profits but also give Chattem a bigger name in the medication industry.
"It's a legacy brand in the industry. It gives us a stronger foothold in the gastrointestinal category which is a about a 2-billion dollar category, Long said.
With unemployment in Chattanooga hovering just over 7-percent, this deal could also create more jobs,especially if the production side of Rolaids is moved to Chattanooga.
"it's the potential to provide more jobs and there's also people who need to run the brand from a sales and marketing prospective and other functions that would touch the brand and not only the manufacturing side so there's a number of options that we're exploring," Long said.
Chattem already has a foothold on products locally produced at the Broad St. manufacturing plant. Those products range from Mouthwash and sleeping aids to lotions and allergy medication.
Now that that Rolaids brand is owned by Chattem, it's yet another recognizable product that has ties to Chattanooga. The city is already home to the world's first Coca Cola bottling plant
, Access America Transport
, McKee Food Corporation
and the list goes on.
"Chattanooga has a history of making companies successful. Volkswagen cam here and built car of the year. Amazon moved here set a record for package deliveries and once again Chattem is once again breaking records and doing great things in Chattanooga," said Chamber of Commerce CEO Ron Harr.