Reckitt Benckiser in £2.5bn takeover deal for SSL
CONSUMER goods group Reckitt Benckiser has agreed to buy Durex condoms and Scholl sandals maker SSL International for £2.5bn ($3.8 billion) to increase its presence in health and personal care.
The Anglo-Dutch maker of Nurofen painkillers, Strepsils and Lemsip cold remedies, said SSL shareholders would receive 1,171 pence in cash a share, including the eight pence final dividend, representing a 33 per cent premium on SSL’s closing price on Tuesday.
The company said the deal would increase sales in its health and personal care arm by about 36 per cent to £2.8bn and boost its presence in markets in Japan and China.
Reckitt chief executive Bart Becht said: “It is anticipated that the acquisition will increase Reckitt Benckiser’s health and personal care net revenues by over 36 per cent to approximately £2.8bn, one third of the Group’s total net revenues.”
Reckitt said it expected cost savings in the region of £100m a year from the combined group by the end of 2012.