Reckitt Benckiser is expanding its presence in emerging markets with a licensing deal that gives it exclusive rights to sell several Bristol-Myers Squibb over-the-counter medicines sold primarily in Mexico and Brazil. For BMS, it’s a chance to increase its focus on the global commercialization of its innovative medicines.

Under their agreement, Reckitt will pay BMS $438 million for an exclusive license to sell the products for three years, and another $44 million option fee for the right to purchase the products at the end of the three-year term. During the collaboration, BMS will continue manufacturing the products and sell them to Reckitt, which will also pay royalties on sales to the pharmaceutical.

The six products that are part of the deal include Picot, an antacid; Tempra, a pain reliever and fever reducer; Micostatin, an antifungal; and Graneodin, a cough and cold medicine sold primarily in Mexico; and Dermodex, an anti-rash cream; Luftal, an anti-gas medicine; and Naldecon, a cold and flu symptoms treatment sold primarily in Brazil.

“This transaction creates a material consumer healthcare platform, infrastructure, and distribution network for RB in both Brazil and Mexico,” says Reckitt CEO Rakesh Kapoor. “As such, it is an important step in building our consumer healthcare presence in Latin American emerging markets.”

While Reckitt is paying a premium at 4.7 times the unaudited 2012 net revenue for the BMS assets, the products will give Reckitt a strong base in Latin America from which it can expand, especially as its core European market has become more challenging. Originally focused solely on household goods, U.K.-based Reckitt has been transforming itself into a consumer healthcare company. In July 2010, it paid $3.8 billion to acquire SSL International, gaining a variety of brands that included Durex condoms. Later that year, it outbid several pharmaceutical companies to acquire India’s Paras Pharmaceuticals for $726 million. Last year it beat Bayer to buy Schiff Nutrition International for $1.4 billion, expanding its product line into vitamins and nutritional supplements.

Reckitt expects the deal to close during the second quarter of 2013 subject to regulatory approval in Brazil and Mexico.